XRP's US trading volume surged from less than 2% to 14% post-SEC ruling, reflecting renewed investor confidence.
July saw XRP's price spike 35%, outpacing Bitcoin's 9%, driven by SEC settlement speculation.
XRPL transaction volume drops 65.6% in Q2, despite rising transaction fees.
According to data from the crypto analytics firm Kaiko, demand for Ripple's XRP has risen rapidly in US markets. This rise in demand followed a major court judgment last year stating that XRP sales on secondary trading platforms are not considered securities transactions. As a result, XRP trading volume on US exchanges has increased significantly, from less than 2% to 14% of worldwide XRP traffic in the last year.
https://twitter.com/CollinBrownXRP/status/1820709873824195062
Trading activity has increased to levels seen before the Securities and Exchange Commission (SEC) litigation, indicating regained confidence among US traders. During the legal dispute, several major exchanges had delisted XRP, limiting its trading.
However, with the recent relisting by significant platforms like Coinbase and Gemini, pent-up demand has been released, driving up trading volumes.
Price Performance and Market Reaction
According to Kaiko's analysis, the price of XRP reached 35% in July, while Bitcoin gained 9%. Speculation about the SEC settlement fueled the surge, but the cancellation of the SEC meeting on August 1st caused a brief price drop. XRP is trading at $0.490, representing an 18% drop over the last week, echoing more significant market trends.
XRP Ledger Activity
Despite the good increases in trade volumes, the XRP Ledger (XRPL) network experienced a decline in transaction traffic in Q2. According to Ripple's reports, transaction volume fell by 65.6% compared to the previous quarter.
However, transaction fees on the network have risen, suggesting a higher cost of operations during periods of reduced activity. Looking ahead, Ripple has several strategic initiatives planned that may enhance the utility and demand for XRP.
These include integrating the XRPL Ethereum Virtual Machine (EVM) sidechain, which could broaden the ledger's functionality and appeal. Additionally, upcoming projects like the OpenEden platform and the launch of the Ripple USD (RLUSD) stablecoin are expected to contribute to increased network activity and foster further growth.
Market Dynamics and Trader Sentiment
The broader market dynamics and ongoing legal developments influence trader sentiment and market activity for XRP. Ripple's proactive measures toward improving the XRPL and expanding its use cases are critical to sustaining the digital asset's relevance and competitiveness in the continuously changing cryptocurrency ecosystem.
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The post Ripple’s XRP Climbs to 14% of Global Trading Volume as US Demand Rebounds to Pre-SEC Levels appeared first on Crypto News Land.
