XRP Market Trading Volume Increases by 46% Month on Month

According to reports, according to CryptoCompare data, the XRP market trading volume increased by 46% month on month in the first quarter, which is likely due to a combination of subsequent market recovery and significant volatility events that often lead to soaring trading volume. On the other hand, the spot trading volume of BTC and ETH increased by 12% and decreased by 12% respectively on a quarterly basis. The on chain activity on XRP Ledger continues to remain strong. On centralized exchanges, XRP’s daily average trading volume increased by 46% in the first quarter, from $698 million to $1 billion. In March of this year, XRP ranked first in the trading volume of Upbit and Bithumb, two major exchanges in South Korea.

Ripple Q1 report: XRP’s daily average trading volume increased by 46% from $698 million to $1 billion

The first quarter of 2021 saw a significant increase in the trading volume of the XRP market. According to reports by CryptoCompare, the trading volume increased by 46% month on month, a growth rate that outpaced that of other top cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). The increase in XRP trading volume is attributed to a combination of the market’s subsequent recovery and significant volatility events that often lead to soaring trading volume.

Overview of the First Quarter

In the first quarter of 2021, XRP experienced a surge in trading volume across all market categories. On centralized exchanges, XRP’s daily average trading volume increased by 46% compared to the previous quarter, rising from $698 million to $1 billion. What’s more, in March, XRP ranked first in trading volume on Upbit and Bithumb, two major exchanges in South Korea. When compared with other top cryptocurrencies, BTC and ETH recorded a modest 12% increase and a 12% decrease in their spot trading volume respectively.

On Chain Activity on XRP Ledger

Apart from the surge in trading volume, the XRP market has also recorded strong on chain activity on the XRP Ledger. This is a positive indication that the market is growing healthily. With a solid foundation for on chain activity, the decentralized network that underpins XRP can accommodate as much trading volume as possible.

Reasons Behind the Increase in XRP Trading Volume

As mentioned earlier, the XRP market’s significant increase in trading volume is due to a combination of factors, including:

Market Recovery

Following the back-to-back market crashes experienced in 2018 and 2019, the cryptocurrency market has gradually picked up pace, slowly recovering from its slump. As market confidence returned in early 2021, more investors gained interest in cryptocurrencies, leading to the growth of the XRP market’s trading volume.

Significant Volatility events

Volatility in the cryptocurrency market is a double-edged sword, where sharp price fluctuations cause panic among investors, leading to selling sprees and price declines. On the other hand, volatile markets can attract traders, creating an environment that is conducive to high trading volumes. The first quarter of 2021 saw significant volatility events, such as the GameStop saga and the growing institutional interest in cryptocurrencies. This led to increased demand for XRP, hence the higher trading volume.

Conclusion

The XRP market enjoyed a great first quarter in 2021, recording a 46% month-on-month increase in trading volume. This growth rate outpaced that of other top cryptocurrencies like Bitcoin and Ethereum. The significant increase in trading volume is attributed to a combination of market recovery and significant volatility events. Furthermore, the XRP market’s strong on chain activity is a positive indication that the market is growing healthily.

FAQs

Q1: What is XRP?
A: XRP is a cryptocurrency that has been developed for use in Ripple’s payment protocol.
Q2: How does XRP differ from Bitcoin and Ethereum?
A: XRP operates on a centralized platform (Ripple), which is different from the decentralized platforms of Bitcoin and Ethereum.
Q3: How can investors trade XRP?
A: Investors can trade XRP on several centralized exchanges, including Upbit and Bithumb. They can also hold XRP in wallets like Ledger Nano S and Exodus.