On-chain data from July 19 shows that as much as 2 million XRP, the native currency of the XRP Ledger, is changing hands every minute on top cryptocurrency exchanges including KuCoin and Poloniex. In a screenshot shared on Twitter, on-chain data shows that more XRP is being batched, driving up volume across the board.

As the expansion proceeded, prices remained higher as of the time of writing on July 20. Although trading volumes on major exchanges including Binance have since decreased slightly, the token is still up 72% from its lows in July 2023. Nevertheless, the recovery in trading volumes this week suggests that demand for the token remains relatively high.

XRP and its spectacular rally

The token’s value has surged after a recent court ruling declared that the SEC could not provide evidence that the token is a security. Based on the Howey test, the judge concluded that XRP does not meet the legal definition of a security.

Three years ago in December 2020, regulators filed a lawsuit accusing blockchain company Ripple and some of its executives, including Brad Garlinghouse, of raising more than $1 billion through alleged illegal sales of XRP, which they claimed was an unregistered security. Ripple denied the allegations and prosecuted, spending millions of dollars in legal fees and ultimately prevailed on the project.

Coinbase, Bitstamp, crypto exchanges relist

The gains were also boosted by news that Coinbase Global, Kraken and other top cryptocurrency exchanges had relisted the token. Specifically, Coinbase delisted XRP in December 2020 following a lawsuit from the SEC, sparking a wave of delistings across U.S. cryptocurrency exchanges.

XRP’s relisting on a major exchange could be a sign of confidence. It could improve the token’s liquidity, which could increase trading volume in the coming months. Supporters see the listing as a refreshing development, especially for U.S. customers who have been cut off from trading.

Some predictions suggest that the token rally could continue in the second half of 2023. Judge Analisa Torres’ ruling in favor of Ripple Labs removes uncertainty about the token’s status. The decision could also open more doors for institutional adoption.

Furthermore, the rally and regulatory clarity solidify the token’s position in the cryptocurrency market. This development could close the gap with Ethereum (ETH) and could even make it the second-largest currency after Bitcoin. The token had shrugged off weakness over the past three years before the court’s ruling, maintaining its position as a top-10 cryptocurrency by market cap amid the harsh and prolonged 2022 crypto winter.