Following a landmark court decision in July, XRP, the cryptocurrency that had everyone talking, surged to a striking $0.93. Yet, the fanfare was short-lived. Within weeks, its value nearly halved. But what triggered such a dramatic fall? Kaiko, a top-tier crypto market intelligence firm, might have the answers.
The July Surge: A Memory?
When a U.S. court deemed XRP non-security for secondary market trades, its value soared. However, by August, it had nosedived by over a quarter, even lagging behind its altcoin peers. It wasn’t for lack of activity. Interestingly, XRP’s trading engagement was more intense compared to other digital currencies.
Statistics from last month revealed XRP’s average trade volume stood at a whopping $462 million. In comparison, the following two top-traded altcoins, Solana and BNB, registered just $128 million and $121 million, respectively. The disproportionate trade activity raised eyebrows.
The Sell-Off Culprits
In its report, Kaiko identified some peculiar trends. Among the leading exchanges, Upbit in Korea and OKX experienced the most substantial sell-off pressures for XRP. On the flip side, Coinbase, a dominant player, witnessed an uptick in purchases throughout the same period.
One detail that’s particularly hard to miss: The average trade size of XRP on Coinbase exceeded that of the top ten altcoins. Could this be a sign? Perhaps. It hints at the possibility of significant traders in the U.S. reentering the XRP market post-July’s ruling. Yet, despite this trend, XRP’s cumulative trade volume in the U.S. still trails behind offshore exchanges. In fact, while XRP dominates offshore markets, it only sits as the sixth most traded altcoin stateside.
At the time of writing this article, XRP trades at a modest $0.50, reflecting a downturn on both daily and weekly performance charts.
A hat tip to Kaiko for providing these insights. Their continuous efforts shed light on the otherwise murky waters of the current XRP market.