XRP Trading Volume Sees 46% Increase in First Quarter

04/29/2023 14:57 • NFT Newsflash • 148 views

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

As per reports from CryptoCompare, the first quarter of 2021 saw a notable increase in the trading volumes of various cryptocurrencies. Among them, XRP led the race with a 46% increase in daily average trading volume on centralized exchanges. Meanwhile, BTC and ETH experienced 12% increase and decrease in trading volumes respectively.

Analysis of Rise in XRP Trading Volume

The growth in XRP trading volume can be attributed to multiple factors. The first is the subsequent market recovery in the first quarter of the year. After massive dips in value experienced in late 2020, the cryptocurrency market began to recover in early 2021. XRP was no exception to this trend, thus attracting more traders.
Another significant factor is the significant volatility events that lead to soaring trading volume. The price of XRP experienced several significant fluctuations in the first quarter alone, with its value increasing to $1.66 at one point before crashing back down to $0.42 thereafter. These fluctuations led traders to buy and sell XRP more frequently.
Despite regulatory uncertainties and legal battles that Ripple, the company behind XRP, is currently facing, the on-chain activity on the XRP Ledger remains strong. The XRP Ledger offers fast settlement times and low transaction fees, making it attractive to traders and investors.

Increased XRP Trading Volume on Centralized Exchanges

XRP’s daily average trading volume on centralized exchanges increased from $698 million to $1 billion in the first quarter. The surge in trading volume can be attributed to the rise in demand for XRP on the market. In March of this year, XRP emerged as the leading cryptocurrency on two major exchanges in South Korea, Upbit and Bithumb, which further augmented its demand.

XRP’s Future Prospects

Despite the regulatory and legal challenges faced by Ripple, XRP’s future looks promising. Its fast settlement times, low transaction fees and strong on-chain activity make it attractive to traders. The growing adoption of XRP among financial institutions is also a positive indicator for its growth prospects.

FAQs

Q1. What caused the surge in XRP trading volume?

A: A combination of subsequent market recovery and significant volatility events that led to soaring trading volume caused the surge in XRP trading volume.

Q2. How much did XRP’s daily average trading volume increase on centralized exchanges in the first quarter?

A: XRP’s daily average trading volume on centralized exchanges increased by 46% in the first quarter, from $698 million to $1 billion.

Q3. What are XRP’s future prospects?

A: Despite regulatory and legal challenges faced by Ripple, XRP’s future looks promising due to its fast settlement times, low transaction fees, strong on-chain activity and growing adoption among financial institutions.

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