On-chain analytics firm Santiment observes a pattern of massive social dominance and, likewise, a major pump in address activity for the sixth largest cryptocurrency, XRP (XRP).
📈 #XRPNetwork is +6.2% the past 24 hours while the majority of #crypto has declined today. In part, this is due to a major pump in address activity over the past week. We have also seen a pattern of big social dominance spikes leading to $XRP price gains. https://t.co/Pw4BIVCew7 pic.twitter.com/1c0QRWXUC7— Santiment (@santimentfeed) January 11, 2023
The impact was felt on the price, as XRP was a top gainer among the top 10 cryptocurrencies by market cap on Dec. 11, before its price slightly eased.
Santiment wrote, "XRP Network is +6.2% the past 24 hours while the majority of crypto has declined today. In part, this is due to a major pump in address activity over the past week. We have also seen a pattern of big social dominance spikes leading to XRP price gains."
At the time of writing, XRP was up 3.08% at $0.374. The positive sentiment trickled into investment products. According to a recent CoinShares report, despite $9.7 million flowing out of digital asset investment products last week, investors put $3 million into XRP.
CoinShares gives a probable reason for this: "The improving clarity on its legal case with the SEC can be seen as increasingly favorable for XRP by the investment community."
Ripple just marked the second anniversary of its ongoing legal battle with the SEC to resolve some fundamental questions about the limits of the SEC's jurisdiction.
Motions for summary judgment in the case have been fully briefed, and the judge's decision is now awaited.
This week, Ripple and the U.S. Securities and Exchange Commission (SEC) filed their responses in opposition to each other's motions to seal certain documents related to the summary judgment motions.
The lawsuit is expected to be resolved in the first half of 2023, as many predictions indicate. James K. Filan predicts a ruling on or before March 31, 2023.
Aside from positive sentiment regarding the lawsuit, the just-concluded Flare token airdrop might have led to a spike in XRP's social dominance. On Jan. 9, Flare commenced its airdrop to XRP holders on participating exchanges who held at least 10 XRP at the time of the snapshot.