Litecoin was briefly the fourth largest cryptocurrency by market cap, surpassing XRP.
XRP has faced major problems since the SEC filed charges against Ripple.
The price of XRP has fallen more than 50% since the charges were filed.
Litecoin, a cryptocurrency commonly referred to as digital „money“ while Bitcoin is said to be „gold,“ has taken over as the fourth largest cryptocurrency in terms of market capitalization.
According to CoinGecko , XRP has since regained its place, but it’s impossible to say how this battle with Litecoin is going .
Why has the price of XRP gone down?
For years, XRP had established itself as the third most dominant cryptocurrency in the blockchain space, but a lot has changed since then.
Last December, the Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs and two of its executives for the sale of more than $ 1 billion in unregistered securities.
The SEC alleges that Ethereum Code is a security, not a currency, and therefore Ripple Labs has not complied sufficiently with the current regulations. The Ripple team argues that XRP is a digital asset and a currency like Bitcoin or Ethereum, and therefore should not be under the jurisdiction of the SEC. The SEC has already clarified its views on Bitcoin and Ethereum , but never gave an outlook on XRP until the charges were filed.
Since the charges were filed, Ripple has received a terrible blow. Ripple Network’s native cryptocurrency, XRP , has gone from a three-month high of $ 0.71 per unit to a current price of $ 0.22.
This is at a time when other cryptocurrencies made massive gains. Many have more than doubled their market capitalization over the same period.
Recently, investors in XRP filed a petition with the SEC stating that the charges against Ripple are not in the best interest of investors and have caused property damage to the company and the cryptocurrency.
If this petition is accepted by the SEC, it is possible that it will reject the charges, although this does not appear likely.
What is litecoin?
Litecoin is a cryptocurrency created by Charlie Lee in order to make faster cryptocurrency payments. Similar to Bitcoin in terms of function but having a different blockchain protocol, Litecoin claims faster transaction times than Bitcoin as well as lower fees due to its mining algorithm .
Knowing that there are many characteristics shared between the two cryptocurrencies, many consider Litecoin to be a secondary asset of Bitcoin.