XRP’s Trading Volume Surpasses Bitcoin (BTC) as Proportion of Market Cap Soars After Court Ruling
In a recent Twitter exchange, the founder of xSPECTAR, an XRPL-based NFT project, Dirk Schepens, drew attention to XRP’s remarkable surge in trading volume, suggesting it had surpassed Bitcoin (BTC) as the crypto asset with the highest trading activity since a significant court ruling. The court ruling in question is related to the legal situation surrounding XRP, which has had a notable impact on its trading activity.
According to a report from Cryptolifedigital, XRP’s trading volume skyrocketed to over $10 billion in a 24-hour window following Judge Analisa Torres’ judgment. This surge in trading volume has sparked discussions within the crypto community.
Ripple’s Chief Technology Officer, David Schwartz, joined the conversation by making a thought-provoking claim. He pointed out that when considering the trading volume as a percentage of its market cap, XRP’s ratio is approximately four times higher than BTC’s. This finding suggests that a significantly higher proportion of XRP tokens are actively traded relative to their total market capitalization compared to BTC.
XRP's trading volume as a percentage of market cap is four times higher than BTC's. I'm not sure if that's good, bad, interesting, or meaningless.
— David "JoelKatz" Schwartz (@JoelKatz) July 19, 2023
To validate Schwartz’s claim, data from CoinMarketCap was analyzed. As of the latest data, XRP’s trading volume over the past 24 hours was $3,574,053,006, with a market cap of $44,039,920,411. In contrast, BTC’s trading volume was $11,398,188,517, with a substantial market cap of $584,497,409,360. The resulting calculations show that XRP’s trading volume as a percentage of its market cap is approximately 8.12%, while BTC’s ratio is comparatively lower at 1.95%. This significant difference supports Schwartz’s assertion.
Further data analysis from Kaiko revealed that since the court ruling, XRP accounted for 21% of all crypto trade volume, surpassing BTC’s 20%. Ethereum (ETH) trailed behind with only an 8% share. It’s worth noting that Kaiko’s evaluation considered trading activity on the spot market starting from July 13 and aggregated data from 25 exchanges.
In addition to Kaiko’s findings, data from CryptoCompare, a market data resource, indicated that XRP’s trade volume is not far below BTC’s. While BTC saw $1.95 billion in volume, XRP’s volume was $1.57 billion. Experts speculate that CryptoCompare’s analysis might only cover spot volume, leaving room for the possibility that XRP could have previously surpassed BTC on this metric.
As the debate continues, these numbers and analyses shed light on XRP’s recent trading activity surge and its growing proportion of actively traded tokens relative to its market cap. The court ruling’s impact on XRP’s trading volume has been significant, and its position in the crypto market appears to be gaining momentum. It remains to be seen how this development will unfold in the coming days and weeks as the crypto space continues to evolve.
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Tosin Matthew is a dynamic figure in the crypto sphere, blending content creation with astute analysis. With a sharp eye for market trends and a passion for blockchain technology, Tosin delivers insightful content that educates and empowers. Trusted by audiences for expert guidance in navigating the complexities of cryptocurrency.
