XRP crashed along with the rest of the cryptocurrency market, but this analyst believes the asset could be one that recovers quickly.
XRP is the largest altcoin by trading volume on Binance this month.
In a new CryptoQuant Quicktake post, community analyst Maartunn discussed how altcoins are currently comparing based on monthly Binance futures trading volume.
Here, 'trading volume' refers to a metric that tracks the total amount of a given asset involved in trades on centralized exchanges. In the context of the current topic, the platform is Binance.
Here are the charts shared by the analyst showing the monthly trends of this metric for various top altcoins in the industry.
The value of this metric appears to be the recent highest for XRP | Source: CryptoQuant
It is evident from the chart that for most months this year, Solana (SOL) dominated trading volume on exchanges. However, in recent months, the market has changed as SOL has lost its top position.
Last month, Dogecoin (DOGE) successfully surpassed this asset to become the top altcoin for this metric, and this month, XRP has already surpassed them.
So far, XRP's trading volume on exchanges has reached $116.6 billion. This value will certainly be higher as there is still a third of December left.
While Binance cannot compensate for the entire industry, it remains the largest by trading volume, so trends there can represent the broader market. 'Tracking the tokens with the highest trading volume on Binance is important because they should be your main focus when trading altcoins,' Maartunn pointed out.
In the past few days, the entire cryptocurrency industry has witnessed a crash. However, this analyst states that based on Binance's monthly trading volume, 'XRP seems to be able to recover quickly.'
According to CoinGlass data, in other news, the market crash in the past 24 hours has led to a significant amount of liquidations in the derivatives aspect of the cryptocurrency industry.
Of the $1.4 billion liquidations that occurred within this window, contracts related to XRP seem to have contributed about $42 million, as shown in the chart below.
Total liquidation share occupied by each trading variety | Source: CoinGlass
Interestingly, Dogecoin and Solana seem to have larger gains compared to XRP. This may be due to both assets witnessing deeper price declines.
XRP Price
During the recent crash, XRP temporarily fell below the $2.0 level, but the token now seems to have managed to recover above that level, with its price around $2.1.
