Data Shows XRP Is Actually Far Stronger Than Other Altcoins In The Market Despite Recent Pullback
The recent rather dismal outlook in the crypto market has forced altcoins like XRP to puke considerable gains after Ripple’s landmark court ruling over the U.S. Securities and Exchange Commission (SEC) in July. XRP’s price has plunged 5.20% in the past week and 22.6% over a 30-day period, returning to pre-ruling levels.
However, despite the sell-off, XRP’s trading dynamic is more potent than that of other altcoins. As per data from crypto market research firm Kaiko, the trading volume of the fifth-largest digital asset by market cap averaged a whopping $462 million last month, outstripping other altcoins fourfold.
Despite its recent pullback,#XRP saw far stronger trading activity relative to other altcoins.
Its average trade volume was $462mn last month, four times higher than the next largest #altcoins by trade volume. pic.twitter.com/Mk9EfHsWNT
— Kaiko (@KaikoData) September 7, 2023
One of the possible reasons behind the robust XRP trading volumes is the token’s utility. Notably, XRP’s main use case is cross-border settlements. Banks and several large financial institutions increasingly utilise XRP for faster, low-cost overseas payments. Ripple’s General Counsel Stuart Alderoty said after the July ruling that he expected U.S. banks to go back to leveraging the fintech company’s On-Demand Liquidity (ODL) product, which uses XRP. This application of the Ripple-promoted token in the real world might be boosting trading activity.
Similarly, positive investor sentiment could be behind the high trade volumes. XRP has loyal fans who support the cryptocurrency through thick and thin. This unwavering dedication could be the catalyst for heightened trading activity in a bearish market.
Perfect Opportunity To Buy XRP?
Although XRP is seeing sustained trading volumes, the crypto’s public interest is shrinking. According to data from Google Trends, online search interest for XRP has declined since its peak on July 13, falling to a score of 7 worldwide and an even steeper fall of 5 in the United States as of September 6.
Nonetheless, the drop in public interest is not necessarily a bad omen. Some market pundits suggest that the decrease in search queries could imply that the token is less overpriced due to the lack of excessive exuberance. As the popular adage says, “Buy when it’s boring, sell when it’s not,” a view echoed by multiple market spectators on the X platform.
XRP is changing hands at $0.47 at press time, dipping below the important $0.50 psychological level. Over the past 24 hours, the coin has undergone a minor retracement of 5.17%, according to CoinGecko data.
Filed under: Bitcoin - @ September 11, 2023 5:15 pm