XRP Hits 7-Year High Amid Bullish Momentum and FTX Payout Plans
XRP has surged to its highest level in seven years, reaching $3.20 on January 15, as investor optimism over cryptocurrency regulations outweighs concerns from the latest legal appeal by the U.S. Securities and Exchange Commission (SEC). By January 16, XRP traded at $3.09, marking a 32% weekly gain, according to CoinMarketCap data. The rally comes as the crypto industry anticipates regulatory clarity under the incoming Trump administration, expected to take office on January 20.
The SEC’s recent appeal, filed on January 15, challenges a July 2023 ruling by District Judge Analisa Torres that declared XRP sales to retail investors did not constitute unregistered securities. Despite the ongoing legal battles, the market remains buoyed by Ripple Labs’ partial legal victories. Chief analyst Ryan Lee of Bitget Research cited these wins, alongside regulatory optimism, as primary drivers of XRP’s price surge.
Adding to the positive sentiment, the now-bankrupt FTX exchange is preparing to distribute over $1.2 billion in repayments to creditors. This event is expected to inject significant liquidity into the cryptocurrency market. Creditors with claims up to $50,000 have until January 20 to fulfill repayment requirements, with distributions likely to commence shortly after. The repayment plan is seen as a pivotal moment, potentially boosting valuations across the industry.
Meanwhile, the decentralized launch of the Hyperliquid (HYPE) token is being celebrated as a milestone in onchain fair token distribution. Excluding venture capital firms and early investors, the $7.5 billion airdrop is considered the most valuable in crypto history. Hyperliquid’s approach highlights a shift away from centralized exchange listings, emphasizing onchain innovations. Vitali Dervoed, co-founder of Composability Labs, described the launch as “a new era between centralized exchange listings and onchain fair launches.”
These developments underscore the growing momentum in the cryptocurrency space as regulatory clarity, market liquidity events, and innovative project launches drive optimism among investors.