cryptoslate.com
The demand for $XRP exceeds that of other crypto on US-based exchanges, with trading volumes surging significantly since November, according to a recent Kaiko report.
The report highlighted $XRP growth in trading activity using Coinbase’s latest earnings report. For the first time in recent history, $XRP contributed more to the exchange’s trading-based revenue than Ethereum ($ETH).
$XRP accounted for 14% of Coinbase’s total trading revenue in the fourth quarter, reflecting a broader trend across US-based exchanges.
The surge in $XRP’s trading volume comes after its re-listing on major US exchanges last year after Ripple Labs secured a partial court victory against the US Securities and Exchange Commission (SEC).
The ruling, which clarified that $XRP was not a security when sold on exchanges, paved the way for its return to mainstream trading platforms, fueling renewed investor interest.
According to Kaiko’s liquidity ranking, $XRP is third behind Bitcoin ($BTC) and $ETH.
The liquidity ranking calculates a crypto’s market cap compared to its liquidity in trading venues. Only $BTC, $ETH, $XRP, and Solana (SOL) have liquidity that closely matches their respective market caps.
Speculation with ETF
The report partially attributed the spike in activity to speculation about the potential approval of a spot $XRP exchange-traded fund (ETF), with asset managers lining up to introduce such products.
Last week, the SEC formally acknowledged $XRP ETF filings, setting off a 240-day review window before a final decision.
According to Bloomberg analysts Eric Balchunas and James Seyffart, the odds of approval for a spot $XRP ETF in the US are 65%, with room for an increase if the new SEC leadership extinguishes the lawsuits in which it’s labeled a security.
Market participants expect heightened volatility as the deadline nears, given the precedent set by Ethereum in May 2024. At that time, $ETH trading volumes and prices surged after the SEC unexpectedly approved spot Ethereum ETFs.
Should $XRP follow a similar trajectory, its trading-related revenues could continue to climb, reinforcing its growing presence in the crypto market.
With institutional interest gaining momentum and regulatory clarity on the horizon in the US, $XRP’s trading dominance may persist in the near term, potentially shaping the next phase of digital asset investment strategies.