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XRP Trading Volume Surpasses Its $18 Billion Market Cap, What's Cause of Anomaly?

Wed, 11/16/2022 - 15:54
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Gamza Khanzadaev
Here's what tens of billions in XRP trading volumes are hiding
XRP Trading Volume Surpasses Its $18 Billion Market Cap, What's Cause of Anomaly?
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XRP has seen abnormal trading volumes, exceeding the current market capitalization of cryptocurrencies by 33%. With the combined value of all XRPs at $18.56 billion, trading volume in the last seven days is $25 billion. Similar figures among the top 10 largest cryptocurrencies by market cap can only be noted for stablecoins, USDT and BUSD.

The reason for the anomalous behavior of XRP trading volumes, over time, is probably because the token is actively used by crypto company Ripple in its ODL operations, roughly speaking as fuel for the technology. According to recent reports, the company has seen an increase in ODL usage, both because the business of old partners is growing and because new ones are joining.

XRP Suddenly Spikes 10% on Fresh Speculation on Ripple-SEC Settlement

XRP liquidity is on demand

As reported by U.Today, Ripple sold $2.82 billion worth of XRP through its ODL corridors in the third quarter of this year. Interestingly, Bitget and Binance accounted for the largest volumes of XRP trades, and this despite the fact that a number of exchanges removed token trading following the start of the SEC's legal investigation into Ripple.

There is no telling how XRP's trading volume would change if regulators decided to recognize the cryptocurrency as a security. One of the main arguments of pro-XRP advocates is the reliance on token sales on the secondary market which, as we found out, exceeds XRP's market capitalization.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.