Why did XRP drop more than other cryptocurrencies?
According to CoinDesk, in trading on Thursday, February 5, XRP fell in price by 16% - this is the most significant decline among Bitcoin, Ethereum and other major cryptocurrencies.
The reason for the sharp drop in XRP lies in the ongoing legal dispute between Ripple and the US Securities and Exchange Commission (SEC). The regulator accuses Ripple of illegally selling $1.3 billion worth of securities. These legal proceedings are negatively impacting investor confidence in XRP.
In addition, many crypto exchanges, including Coinbase, Crypto.com and Bittrex, have already announced the delisting or suspension of XRP trading due to this conflict with the SEC. Accordingly, the asset's liquidity is falling, which is also putting pressure on its exchange rate.
At the same time, Bitcoin and Ethereum, which are not involved in legal disputes with regulators, are showing a more moderate decline within the overall market trend.
Expert opinion
According to analysts, the current situation around XRP is a serious blow to the cryptocurrency's reputation and investor confidence. If Ripple is unable to successfully defend its position in court, further XRP price declines seem highly likely.
At the same time, experts note that this situation may open up new opportunities for investors wishing to acquire XRP at a lower price. However, investments in an asset under regulatory pressure are still associated with increased risks.