The market of decentralized finances (DEFI) on capitalization overtook the cryptocurrency of the XRP, which has recently suffered a lot due to claims from SEC
The data of the analytical company Messari suggests that the total capitalization of the Defi market ($ 11.5 billion at the time of writing an article) exceeded XRP capitalization ($ 10.2 billion). Cryptocurrency asked under the pressure of mass sales on the market.
Defi Sector on Lift
Popular DEFI assets, such as UNI and MKR, survived a serious rally warmed by the start of ETH 2.0 and the new bull trend in Bitcoin. In the cryptocurrency community there is an opinion that some traders began to translate profits derived from the growth of Bitcoin to decentralized finances. In this regard, analysts concluded that the industry will continue to grow actively in 2021.Ripple in opal
Meanwhile, Fintech-startup Ripple and its XRP coin were under blow. The year began for this cryptocurrency at all, since at the end of December 2020, the US Securities and Exchange Commission filed a lawsuit against the Company and its leadership. The regulator accuses Ripple in the release and sale of unregistered securities.
Already, many trading platforms and services, including Coinbase, eliminate the listing coin, or suspend trading. GRAYSCALE INVESTMENTS sold 9 million XRP tokenes and eliminated the coin from its global trust, having raised to distance themselves as much as possible from the project. Recall, GRAYScale has a SEC license and can sell securities to retail investors.
However, if the court accepts the SEC side, the project problems will increase. The BEINCRYPTO has previously reported that Neancake Revolut does not exclude the possibility of XRP impairment to zero.
The volumes of XRP are falling
After the news about the lawsuit, the market capitalization of the XRP collapsed by almost 60%. However, some experts pour oil into the fire, arguing that the coin always had signs of security. For example, the famous analyst Peter Brandt has long adhere to the opinion that the token released Ripple is a securine paper:
Dead Cat Bounce After 32 Straight Red Days. The Best Trading Practice Is To Be Long The Strongest Member of A Category When Long, Short The Weakest When Short. Don't Be Long The Weakest Hoping Upon Hope to Catch Up $ xrpbtc.
- Peter Brandt (@peterlbrandt) November 6, 2020
Ripple reputation suffered
SEC's claim replenished a long list of complaints to the company. Several independent investors also sued Ripple for various reasons. Ripple Labs stated that they were ready to defend their interests, but the reputational damage was already applied.
Read the essence of SEC claims and the circumstances of the case in our article
In addition, at this stage it is difficult to say than this trial will be wrapped for Ripple and XRP. Perhaps a lot of time will pass before the situation stabilizes. So it was with kik and Telegram.
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