Ripple (XRP) is the new investors’ favorite instead of Ethereum. But why?

Ripple has shown strong growth over the last 48 hours; its price has increased by 30%. In our article, we give two reasons for the growth of this asset, something important for every investor to know.

1. Convergence between the regulator and Ripple

Caroline Pham (Commissioner of the regulator, CFTC) personally visited Ripple Labs’ offices as part of a “study tour.” The Commissioner spoke with company executives, including Ripple CEO Brad Garlinghouse.

The CFTC’s visit came just days after Ripple and the SEC filed a joint petition for summary judgment in federal court.

Both of these facts were viewed extremely positively by the market — it looks like Ripple has found common ground with the regulator. At the very least, their relationship has clearly improved. This suggests that the legal problems that seriously disrupted Ripple’s business may be over.

#XRPCommunity #SECGov v. #Ripple #XRP 1/2 The parties have filed a request that any motions by third-parties to seal portions of the parties’ summary judgment filings be filed subject to the Court’s September 12, 2022 order. pic.twitter.com/J6rbeRXmHi

— James K. Filan 🇺🇸🇮🇪 114k (beware of imposters) (@FilanLaw) September 19, 2022

2. Large traders are switching to XRP instead of ETH

After Ethereum switched to the PoS consensus algorithm, whales began investing heavily in XRP as they exited ETH. Contrary to all expectations, The Merge did not cause Ethereum prices to rally, while Ripple has a big deal coming up with the US authorities. Therefore, the capital began to flow into a more profitable coin.

Fresh statistics fully confirm this logic.

According to Santiment, from September 15 to 21, the number of ETH wallets worth $1 million to $13 million decreased by 2.24%, and the number of addresses with balances from $125k to $1.3 million decreased by 1.41%.

Simultaneously, there was increased activity on the XRP market — from September 15 to 21, the number of transactions of $100,000 and more reached a record high from May 2022, and the ratio of long to short positions opened on the cryptocurrencies increased to the highest level since November 2021.

What do we have as a result?

As a result of the capital outflow, ETH fell 19% last week and hit a two-month low of $1,219, while XRP rose more than 30% to near its May high of $0.446.

XRP is still rising as of this writing.