Despite the challenges posed by legal battles with the U.S. Securities and Exchange Commission (SEC) and price fluctuations, XRP has experienced a significant surge in trading volume, raising questions about its future potential.
XRP’s Trading Volume on the Rise
XRP has witnessed a substantial increase in trading activity, surpassing other altcoins in terms of trading volume. According to data from Kaiko, Ripple recorded a trading volume of $462 million, four times higher than the next largest altcoins, Solana (SOL) and Binance Coin (BNB), which reported trade volumes of $128 million and $121 million, respectively.
Analyzing the average share of sell volume for Ripple, it becomes evident that exchanges Upbit and OKX had the most significant selling pressure. On the other hand, Coinbase experienced more prominent buying pressure throughout the same period.
This trend suggests that buying demand for XRP was primarily driven by large traders in the United States, especially after a court ruling in July granted investors renewed access to the token.
Additionally, XRP has attracted the attention of whales, as evidenced by a significant transfer of approximately 29.7 million tokens (equivalent to $15.04 million) from an unknown wallet to Bitstamp, according to data from Whale Alert. This surge in whale interest indicates growing confidence in XRP’s future prospects.
Despite the surge in trading volume, XRP’s price and volume have faced challenges. At the time of writing, Ripple was trading at $0.506, with both its volume and price experiencing notable declines over the past week. These fluctuations raise questions about the sustainability of XRP’s recent trading activity.
Ripple’s Regulatory Battles
Ripple has been embroiled in legal battles with the SEC for quite some time. In a recent filing with the U.S. District Court for the Southern District of New York, Ripple’s legal team addressed the SEC’s request for an appeal.
Ripple’s legal team argued that the SEC’s grounds for an appeal largely rested on dissatisfaction with a previous judge’s decision. They emphasized that the SEC had failed to meet the standard for a stay and called on the judge to deny any request for an appeal or stay.
The ongoing regulatory scrutiny and legal battles add an element of uncertainty to Ripple’s future trajectory. However, it is essential to note that the outcome of these legal proceedings will significantly impact XRP’s regulatory status and, consequently, its market performance.