- 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.
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?
