XRP’s Market Dominance Crashed While Bitcoin’s Surged

XRP’s market dominance crashed because of the recent SEC lawsuit but on the other hand, Bitcoin’s market dominance surged. Following the latest XRP news, we take a closer look at the Ripple analysis.

Ripple is at its lowest for years and the fall happened because of the latest SEC Filing of the lawsuit against Ripple for selling unregistered $1.3 billion securities. Bitcoin’s market dominance however surged and hit 68.49% which is the highest figure all year. In the meantime, XRP stood at 2.26% in terms of market dominance and the coin hasn’t been at this level since 2017 according to CoinMarketCap data while a month ago its dominance was over 5%.

Ripple has spent 8 years working tirelessly to build an incredible company transforming global payments. Our mission doesn’t stop! Here’s what I sent to employees yesterday + our lawyers’ reaction to today’s SEC filing. https://t.co/wGHW4hCW2T

— Brad Garlinghouse (@bgarlinghouse) December 23, 2020

Market dominance refers to the percentage a coin’s market cap accounts for the entire crypto market. The data tells you a lot about how well the cryptocurrency is doing because it’s market dominance is surging as investors pump money into the coin or pulling them out into other coins. Bitcoin has always had the biggest market dominance right after Ethereu, XRP, Tether, Bitcoin Cash, and Litecoin.

This year, Tether was battling XRP’s market dominance. Now, following XRP’s drop it stands in third place at 3.2% and a part of the increase in USDT’s market dominance is down to the DeFi explosion with the stablecoin being mostly used on other DeFi apps. USDT is the biggest crypto by trading volume as of late. XRP’s decline happened because of the legal mess that the cryptocurrency is currently in.

The US Securities and Exchange Commission filed a $1.3 billion lawsuit against Ripple labs alleging that the company raised the amount in unregistered securities offerings since 2013. Since then, three or more exchanges delisted the cryptocurrency and the price crashed. At the time of writing, XRP’s price dropped by 34% in the past 24hours to $0.318 according to CoinMarketCap. The market cap also dropped to $14.5 billion. Bitcoin on the other hand, is winning and has had an increase in market cap of over $438 billion marking a $6 billion increase as of yesterday.

XRP dropped by over 30% on the news but the carnage could be just around the corner. The negative sentiment spilled into other altcoins as the investors try to predict which asset is next. The situation is now under control as Ripple holders have nothing to fear but also the news were enough to turn the overall market trend into bearish one.