XRP Is Back in the Game as the SEC Officially Drops Its Lawsuit Against Ripple

The U.S. Securities and Exchange Commission (SEC) has officially halted its legal proceedings against Ripple, a significant development in a case that began in December 2020. While this move paves the way for a potential settlement, it also highlights XRP's slow recovery.

Over the last 14 days, XRP has seen a modest price increase of 6.3%. But as All Things XRP points out, the damage inflicted by the lawsuit goes far deeper than just the token’s market performance.

The SEC's lawsuit against Ripple nearly five years ago led to XRP being delisted from major U.S. exchanges, resulting in a 66.5% price plummet in December 2020—its largest monthly loss ever. This move not only impacted XRP's liquidity but also disrupted its momentum and trust among institutional players.

Following the delistings, XRP's price largely remained stagnant between $0.30 and $0.50 for two years as it missed out on any significant bull runs. While it did experience some gains—276.2% in 2021 and 82.5% in 2023—those figures pale in comparison to competitors like Solana. (SOL surged by 11,180% in 2021, dropped in 2022, and then rebounded 918.4% in 2023).

This lack of participation in major price movements throughout the last multi-year bull run has been widely attributed to the uncertainty and skepticism surrounding the case.

But the SEC case also inflicted lasting damage on XRP's reputation. Analysts argue that the multi-year litigation cost Ripple valuable time that could have been used to innovate and expand its presence in the global payments sector.

As time passed and new technologies emerged, such as Solana's rapid development and Block's (formerly Square) entry into the Bitcoin (BTC) market, Ripple's narrative shifted from technological innovation to a legal battle for survival. This shift might have alienated some of XRP's early supporters who were interested in its technical promise rather than a prolonged legal case.

During this period, institutional confidence in Ripple also eroded as Solana and other rivals capitalized on XRP's absence from key markets.

Now, as the SEC case concludes, the question remains: can XRP recover and return to its former glory?

Despite the SEC dropping its charges, XRP hasn't shown any explosively bullish momentum. In the last seven days, XRP is up a measurably small 0.6%, and in the past 24 hours, it dropped by 1.1%.

However, there are promising tidbits of information that suggest a strategic rebuilding effort is underway. Ripple is reportedly working on new ETF applications and the launch of its stablecoin RLUSD, and it's forging fresh partnerships.

Despite past setbacks, analysts remain cautiously optimistic that if Ripple can quickly rebuild trust and accelerate innovation, XRP may yet reclaim its role as a key player in cross-border payments.

The SEC has officially halted its legal proceedings against Ripple, signaling a major step toward possible settlement and resolution. However, despite this development, XRP's journey to recovery continues.

After being delisted from major U.S. exchanges following the SEC lawsuit, XRP dropped 66.5% in December 2020, marking its largest monthly loss ever. This move not only impacted XRP's liquidity but also disrupted its momentum and trust among institutional players.

While XRP did experience some gains—276.2% in 2021 and 82.5% in 2023—those figures pale in comparison to Solana's astronomical rise of 11,180% in 2021, followed by a decline in 2022 and a rebound of 918.4% in 2023.

As the SEC case unfolded, it largely kept XRP sidelined from any significant participation in the major bull runs that characterized the cryptocurrency market in recent years.