Demand for XRP exceeds the demand for other US-based cryptocurrencies in exchanges, as trading volumes have skyrocketed since November, according to a recent Kaiko report.
This report highlights XRP growth in trading activities using Coinbase's latest revenue report. For the first time in recent history, XRP contributed more to exchange trading-based revenue than Ethereum (ETH).
XRP accounted for 14% of Coinbase's total transaction revenue in the fourth quarter, reflecting the broader trends across the US-based exchange.
The surge in XRP trading volume comes after Ripple Labs secured a partial court victory over the US Securities and Exchange Commission (SEC), and was relisted on major US exchanges last year.
The ruling revealed that XRP was not security when it was sold on exchanges, paving the way for a return to mainstream trading platforms and raising interest among new investors.
According to Kaiko's liquidity rankings, XRP is third behind Bitcoin (BTC) and ETH.
Liquidity rankings calculate the market capitalization of a crypto compared to liquidity at the trading venue. Only BTC, ETH, XRP, and Solana (SOL) have liquidity that closely matches their respective market caps.
Speculation with ETF
The report partially attributed a surge in activity regarding the potential approval of the XRP Exchange-Traded Fund (ETF), in which asset managers line up to implement such products.
Last week, the SEC officially made its appearance Recognised XRP ETF filing, set up a 240-day review window before final decision.
Possible approval for the US Spot XRP ETF, according to Bloomberg analysts Eric Barknas and James Seifert It's 65%There is room for increased as new SEC leadership eliminates lawsuits labeled security.
Given the precedent set by Ethereum in May 2024, market participants expect deadlines to rise as the deadline approaches. At the time, the amount and price of SEC unexpectedly trading Spot Ethereum ETFs, which were approved by the SEC, had skyrocketed.
If XRP follows a similar trajectory, its transaction-related revenues could continue to rise and strengthen its presence in the crypto market.
XRP trading control could last in the short term, as institutional benefits gain momentum and regulatory clarity on the US horizon, and could form the next stage in digital asset investment strategies It has sex.
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