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XRP Dwarfs Bitcoin as Post-SEC Result Continues to Benefit Ripple

Published July 21, 2023 2:28 PM
Teuta Franjkovic
Published July 21, 2023 2:28 PM
Key Takeaways
  • XRP dominates in volume terms since SEC’s decision about it not being security
  • XRP has outperformed BTC, accounting for 21% of all crypto transaction volume, to BTC’s 20%
  • Still, the volume of transactions is declining, so it could mean the end of the rally

Since the court determined that XRP is not a security, it has dominated in terms of volume, recently outpacing Bitcoin in terms of market cap volume.

XRP Eclipsing Bitcoin

A recent Twitter conversation brought up XRP’s increased trading volume by Dirk Schepens, the founder of xSPECTAR, an XRPL-based NFT project. He claimed that XRP had eclipsed Bitcoin (BTC) as the cryptocurrency with the largest trading activity following the court decision.

Within a 24-hour period after Judge Analisa Torres’ ruling, XRP’s trading volume had surpassed $10 billion.

And while some questioned the accuracy of Schepens’ information, Ripple’s Chief Technology Officer David Schwartz answered provocatively.

Schwartz noted that there are many possible interpretations because XRP’s trading volume as a percentage of its market cap is four times higher than BTC’s.

Calculating the Claims

With a trading volume of $2,248,762,398 and a market value of $$40,688,646,47, according to CoinMarketCap  data analysis, it is clear that XRP has displayed exceptional trading activity during the last 24 hours.

BTC, on the other hand, had a trading volume of $$13,569,814,934  and a large market cap of $579,361,777,905.

It has to be taken into account the trading volume as a proportion of the market capitalization for both XRP and BTC and compare the findings in order to verify Schwartz’s claim.

Credit: CryptoBasic

A closer examination of the data reveals that the trading volume of XRP as a percentage of its market capitalization is roughly 9%. BTC’s percentage, which is 2%, is considerably lower in contrast.

These numbers support Schwartz’s earlier assertion and highlight XRP’s larger percentage of actively traded tokens in comparison to its market valuation.

Cumulative Spot Volume for XRP

Additionally, Kaiko , a trustworthy source of market information, provided insights on XRP’s gaining significance in the cryptocurrency industry.

The report claims that after the key court decision, XRP has outperformed BTC, accounting for 21% of all crypto transaction volume to BTC’s 20%. Ethereum (ETH) recorded a meager 8% share in contrast.

The trading activity on the sports market since July 13 is considered in this report from Kaiko and Schepens’ declaration.

This does not consider the 24-hour volume of trades across all marketplaces, since BTC continues to outperform XRP. Kaiko pointed out that data from 25 exchanges were used in the evaluation.

Additionally, data from the market data source CryptoCompare  demonstrates that XRP and BTC are closely matched regarding trade volume. Notably, the volume for BTC is $1.95 billion, while the volume for XRP is $1.57 billion. Commentators contend that because CryptoCompare only examines spot volume, XRP might have previously surpassed BTC on this criteria.

Similar to how XRP dominated South Korean markets, earning at least $2.5 billion after a US court determined that the digital asset is not a security.

The XRP Rally May Be Coming to an End

However, given that the token’s trading volume is beginning to decline, XRP rally may be nearing its end.

The ongoing decline in trading volume might perhaps result in a price reversal for XRP, which is now trading close to its local top. Following a landmark legal victory over the US Securities and Exchange Commission (SEC), XRP’s trading volume has been an important factor to monitor during its spectacular price surge.

The current drop may indicate a change in market sentiment, given that the token’s price ascent was mostly driven by an increase in trade volume.

The drop in volume shows that fewer XRP-related transactions are taking place. This frequently suggests that traders may begin to take profits or reduce their purchase activities during a price rally, possibly in anticipation of a market shift.

This signals that we might be approaching a turning point in the recent price trajectory of the token, together with the fact that XRP is trading close to its local top.

A price reversal can occur if this volume decline keeps up. A rally’s large volume frequently reflects fervent investor interest and confidence in the prospects of the asset. However, if volume falls, it can be a sign that interest is dwindling and a sell-off is about to occur.

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