Trading volume in XRP on South Korean crypto exchanges surpassed that of bitcoin, topping 40% on UpBit and 35% on Bithumb and Korbit, indicating a high demand for XRP in the country.
Traders warn of a correction in the coming days, however, which could damp short-term trading sentiment.
Trading volume in XRP flipped that of bitcoin {{BTC}} on South Korean crypto exchanges this week, one symptom of the frenzy that may have helped fuel the token’s 20% rise over the period.
Data tracked by CoinGecko shows XRP accounted for as much as 40% of trading volumes on UpBit, the country’s biggest exchange, and over 35% on Bithumb and Korbit earlier this week. That is, unusually, higher than usual leaders bitcoin and Tether's USDT, indicating a short-term demand for the tokens in the country.
Volumes also surged on global exchanges such as Binance and OKX, but did not overtake bitcoin or ether {{ETH}}. Open interest on XRP-tracked futures more than doubled earlier this week with a bias toward bullish movements, as reported.
Normal business resumed on Friday, with bitcoin's volume exceeding XRP's in South Korea amid a broader market slump that sent the CoinDesk 20 Index (CD20) down 1.9% in 24 hours. BTC lost 1.3% while XRP slid as much as 8%.
In crypto circles, South Korean traders are known for pushing euphoric rallies on tokens, contributing to buying pressure and possibly influencing prices.
“With daily local media coverage of XRP and influencers mentioning it, it seems that trading volume is focused on the token,” Bradley Park, a Web3 analyst at on-chain analysis firm CryptoQuant, said in a Telegram message. “There seems to have been a sudden increase in trading volume as SEC-related news has been in the spotlight.”
Gains in the token started last week as traditional futures powerhouses CME and CF Benchmarks announced the debut of indices and reference rates for XRP.
On Wednesday, Ripple Labs CEO Brad Garlinghouse said in a Bloomberg TV interview that he expects a “resolution very soon” on the legal dispute between the U.S. Securities and Exchange Commission (SEC) and Ripple.
These comments may have boosted market confidence in the closely related XRP token, Ryan Lee, chief analyst at crypto exchange Bitget, wrote in a message to CoinDesk on Friday. However, Lee warned of a decline ahead after the market-beating performance.
“The recent surge in XRP might trigger a technical correction, so there could be some degree of price pullback in early August. However, if the price can stay above key support levels (e.g., $0.70), it may continue to rise subsequently,” Lee said.
