The payments-focused cryptocurrency , XRP, has overtaken BNB token as the fourth-largest digital assets in terms of market capitalization.

According to data from CoinDesk, XRP had a market capitalization of $41.44 Billion at the time of writing. The value has risen 66% over the last 24 hours. BNB’s value increased 6.5%, to $40.57 Billion. XRP’s value soared from 47 cents up to almost 78 cents.

The surge in cryptocurrency prices is largely due to Ripple Lab’s partial win in a lengthy legal battle against the U.S. Securities and Exchange Commission.

The District Court for the Southern District of New York ruled on Thursday that Ripple’s sale of XRP through digital asset exchanges was not an offer or sale of investment contracts, as the SEC claimed.

However, the Court found that Ripple sold XRP directly to institutions, hedge fund managers and other parties for over $700,000,000 in violation of securities laws. In late 2020, the SEC filed a suit against Ripple, accusing it of selling unregistered security after the company had sold $1.3 billion in XRP. The SEC’s regulatory action saw several exchanges remove XRP from their list and put the cryptocurrency under pressure. Meanwhile, the broader market finished the year with a strong finish.

The first part has allowed centralized exchanges to list XRP again. Crypto.com already took the step, and Gemini explores the listing of XRP both for spot and derivatives.

According to Townsend Lansing, Head of Product at CoinShares, the second part has determined that XRP can be classified as a security.

The Court found that Ripple violated securities laws in particular in relation to sales made directly to institutional investors. XRP has been deemed a securities, and questions have also been raised about the legality its offering. The Court confirmed that there was a violation of the law in these sales. This is a significant victory for the Securities and Exchange Commission. It also sets a precedent to take legal action against other cryptos,” Langsing wrote in an email.

It is important to remember that as underwriters, institutional investors who bought directly from Ripple could be subject to a class-action lawsuit. Langsing said that this is an area worth watching closely, particularly if well-known venture capitalists are involved.

The price spike and bullish position on the perpetual futures markets are evidence that traders have not yet focused on the second part.

Perpetual Futures are similar to standard futures, but without an expiration or settlement date.

Positive funding rates suggest that the perpetual futures market has a bullish bias. (Coinglass) (Coinglass)

According to Coinglass, aggregated volume-weighted permanent futures funding rates have reached their highest level since December. Open interest-weighted rate has risen to four-month-high.

Both indicate that the leverage is skewed decisively to the bullish.

In the perpetual futures markets, funding rates are payments made to holders of bullish long or bearish short positions. A positive funding means that longs are in control and paying shorts for their open positions.

Parikshit Miishra is the editor.