DeFi market overtook XRP cryptocurrency in terms of capitalization



DeFi market overtook XRP cryptocurrency in terms of capitalization

DeFi market overtook XRP cryptocurrency in terms of capitalization

  • The total amount of funds in the DeFi segment exceeds XRP capitalization

  • XRP capitalization drops to $ 10.2 billion amid upcoming litigation with the SEC

  • Many cryptocurrency exchanges exclude an asset from listing

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The Decentralized Finance Market (DeFi) Decentralized Finance (DeFi) is a financial service built on blockchain technology that offers users access to an open, efficient and … More) capitalization has overtaken the XRP cryptocurrency, which has recently been hit hard by claims by the SEC

Data from analyst firm Messari suggests that the total capitalization of the DeFi market ($ 11.5 billion at the time of writing) has exceeded XRP’s capitalization ($ 10.2 billion). The cryptocurrency sank under the pressure of massive sales in the market.

DeFi market overtook XRP cryptocurrency in terms of capitalization

DeFi Market Cap vs. XRP: Messari

The DeFi sector is booming

Popular DeFi assets like UNI and MKR have seen a major rally, fueled by the launch of ETH 2.0 and a new bullish trend in Bitcoin. In the cryptocurrency community, there is a perception that some traders have begun to transfer the profits gained from the growth of bitcoin into decentralized finance. In this regard, analysts concluded that the industry will continue to grow rapidly in 2021..

Ripple in disgrace

Meanwhile, fintech startup Ripple and its XRP coin are under attack. The year started off completely for this cryptocurrency, since at the end of December 2020, the US Securities and Exchange Commission filed a lawsuit against the company and its management. The regulator accuses Ripple of issuing and selling unregistered securities. 
Already, many trading platforms and services, including Coinbase, are removing the coin from the listing, or suspending trading. Grayscale Investments sold 9 million XRP tokens and removed the coin from its global trust, trying to distance itself from the project as much as possible. Recall, Grayscale is licensed by the SEC and can sell securities to retail investors. 
However, if the court takes the side of the SEC, the project will have more problems. The BeInCrypto editorial staff previously reported that Revolut’s neobank does not rule out the possibility of XRP depreciation to zero. 

XRP volumes are falling

XRP’s market capitalization plummeted nearly 60% following news of the lawsuit. However, some experts add fuel to the fire, arguing that the coin has always had signs of a security. For example, renowned analyst Peter Brandt has long held that token as the use of cryptocurrencies grows, new types of tokens are emerging. They can represent value or something intangible like voices. Two … More issued by Ripple is a security:

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’s reputation has suffered

DeFi market overtook XRP cryptocurrency in terms of capitalization

The SEC’s lawsuit joins a long list of claims against the company. Several independent investors have also sued Ripple for various reasons. Ripple Labs said they are ready to defend their interests, but reputation damage has already been done.

Read the essence of the SEC claims and the facts of the case in our article

In addition, at this stage it is difficult to say how this litigation will turn out for Ripple and XRP. It may take a long time before the situation stabilizes. This was the case with Kik and Telegram.


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