XRP’s Trading Volume Skyrockets, Surpassing Market Giant Bitcoin

XRP’s remarkable surge outpaces Bitcoin in trading volume relative to market cap, after court ruling.

XRP rocket flying in space, leaving a long trail of flames and smoke.
Created by Gabor Kovacs from DailyCoin
  • A court ruling on XRP’s non-security status has sparked a surge in trading activity.
  • XRP’s trading volume-to-market cap ratio has reached more than double that of Bitcoin.
  • XRP has started trading near a potential tipping point.

In a fascinating turn of events within the crypto market, Ripple’s XRP has outperformed Bitcoin (BTC) in terms of trading volume compared to its market capitalization. This intriguing development follows a significant court ruling that confirmed XRP’s status as a non-security, sparking a remarkable surge in XRP trading activity.

XRP Claims Impressive 21% of the Entire Crypto Trade Volume

The discussion on Twitter about XRP’s flourishing trading volume was initiated by Dirk Schepens, the mind behind the XRPL-based NFT project xSPECTAR. His observation received validation from David Schwartz, the Chief Technology Officer of Ripple.

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According to Schwartz, XRP’s trading volume, measured as a percentage of its market cap, has now reached two and a half times more than BTC’s.

XRP has boasted a substantial trading volume of $2.3B within 24 hours while maintaining a formidable market cap of $40.4B. In comparison, Bitcoin, with a significantly larger market cap of $579B, recorded a trading volume of $13.8B. As a result, this yields a striking trading volume-to-market cap ratio of 5.6% for XRP, far exceeding Bitcoin’s mere 2.3%.

Market information provider Kaiko solidified XRP’s remarkable success story, revealing that after the momentous court ruling, XRP claimed an impressive 21% of the entire crypto trade volume, slightly edging past Bitcoin’s 20%.

XRP’s Trading Near Local Top: Price Reversal Imminent?

High volume often reflects strong investor interest and confidence in the asset’s potential during a rally. However, if the volume were to decrease, it could imply that interest is diminishing, and there might be a possibility of a sell-off.

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Considering that XRP is trading near its local top, this situation suggests we could be approaching a tipping point in the token’s recent price journey. If a reduction in volume were to manifest, it might lead to a potential price reversal.

On the Flipside

  • XRP’s trading volume surge relative to its market capitalization might be influenced by short-term speculative activities rather than genuine market demand.
  • While XRP has seen significant growth in trading volume, it still lags behind Bitcoin in terms of overall market capitalization.
  • The court ruling clarifying XRP’s non-security status may not be the final word.

Why This Matters

XRP’s extraordinary surge in trading volume relative to its market capitalization signifies a momentous shift in the crypto landscape. This development showcases the coin’s newfound strength and potential, drawing attention to its non-security status and gaining recognition as a prominent player in the global crypto market.

To learn more about Brad Garlinghouse’s perspective on the recent XRP ruling and its implications for the crypto industry, read here:

Brad Garlinghouse Hails XRP Ruling as Turning Point

To understand the soaring success of XLM and XRP as cross-border payment adoption drivers, read here:

XLM and XRP Soaring in Tandem: Driven by Cross-Border Payments?

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.