XRP trading volumes have surged to levels not seen since just before the SEC initiated legal action against Ripple, as reported by analytics firm Kaiko. Blockchain researcher Colin Brown has highlighted that XRP’s market activity has rebounded to pre-lawsuit figures. Following Judge Analisa Torres’ summary judgment last July, XRP trading volumes in U.S. markets have shown a marked increase.
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The court’s ruling clarified that XRP itself does not qualify as a security. Furthermore, it determined that Ripple’s sales of XRP through secondary trading platforms do not constitute securities transactions, while direct sales to institutional investors are categorized as such. As a result, several U.S. exchanges, including Coinbase and Gemini, have resumed listing XRP, thereby tapping into previously pent-up demand from American traders.
### Trading Volume Surge
A chart from Kaiko Analytics, titled “Share of XRP Volume on US Exchanges,” tracks the weekly trading volume percentage of XRP on U.S. exchanges from January 2020 to July 2024. This chart illustrates key events that have impacted XRP’s trading dynamics.
From January to December 2020, XRP’s trading volume remained consistently stable at 5-10%, reflecting steady market interest. However, following the SEC’s legal action against Ripple on December 22, 2020, which claimed that XRP was being sold as an unregistered security, trading volume plummeted dramatically, dropping from approximately 10% to below 1%.
Throughout 2021 and into mid-2022, trading volumes remained persistently low, staying under 1%. Notably, from mid-2022 to early 2023, there was a gradual increase in trading volume, climbing to around 3-5%, likely spurred by developments in the legal case and optimism for a favorable outcome.
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On July 13, 2023, Judge Torres ruled that XRP is not a security, leading to a significant increase in trading volume that soared from about 5% to nearly 15%. From late 2023 through July 2024, XRP’s trading volume has continued to be robust, fluctuating between 10-15%.
### This Technical Indicator Concur
Technical indicators are also reflecting a resurgence of interest in XRP, which could impact its price. A chart from TradingView shows the daily price movements of XRP against Tether (USDT) on Binance, featuring the Demand Index indicator.
The recent rise in the Demand Index from negative to less negative values suggests that selling pressure is easing and buying interest is on the rise. Should the Demand Index move into positive territory, it could indicate the potential for a bullish reversal.
### Rising Social Activity
In addition, The Crypto Basic reports that prominent figures in the cryptocurrency community, such as Nick, an entrepreneur and self-identified “Crypto Crusader,” have acknowledged XRP’s significant growth potential. Nick expressed astonishment at the increasing demand, noting that it shows no signs of waning. Utilizing data from the market intelligence tool Fiatleak, he pointed out that XRP has surpassed 1 million trades per minute worldwide.
**Disclaimer:** This article is for informational purposes only and should not be construed as financial advice. The opinions expressed here represent the author’s views and do not necessarily reflect those of The Crypto Basic. Readers are encouraged to conduct their own research before making investment decisions. The Crypto Basic is not liable for any financial losses incurred.
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