XRP has dominated in volume since the court ruled that it is not a security, with its volume as a percentage of market cap recently towering over Bitcoin.
In a recent Twitter exchange, Dirk Schepens, the founder of xSPECTAR, an XRPL-based NFT project, drew attention to XRP’s rising trading volume, suggesting it had surpassed Bitcoin (BTC) as the crypto asset with the highest trading activity since the court ruling.
Recall that The Crypto Basic disclosed yesterday that XRP’s trading volume recently crossed $10 billion in a 24-hour window following Judge Analisa Torres’ judgment.
While some questioned the veracity of Schepens’ information, David Schwartz, Ripple’s Chief Technology Officer, responded with a thought-provoking claim.
Schwartz pointed out that XRP’s trading volume as a percentage of its market cap is four times higher than BTC’s, leaving room for diverse interpretations.
XRP's trading volume as a percentage of market cap is four times higher than BTC's. I'm not sure if that's good, bad, interesting, or meaningless.
— David "JoelKatz" Schwartz (@JoelKatz) July 19, 2023
Evaluating the Claims
Analyzing the data from CoinMarketCap, it is evident that XRP has demonstrated remarkable trading activity over the past 24 hours, with a trading volume of $3,574,053,006 and a market cap of $44,039,920,411.
In contrast, BTC’s trading volume amounted to $11,398,188,517, with a substantial market cap of $584,497,409,360.
To validate the statement made by Schwartz, we need to consider the trading volume as a percentage of the market cap for both XRP and BTC and compare the results. For brevity’s sake, The Crypto Basic has made the mathematical calculation in the image below:
A closer look at the numbers reveals that XRP’s trading volume as a percentage of its market cap is approximately 8.12%. In comparison, BTC’s ratio is comparatively lower at 1.95%.
These figures substantiate Schwartz’s earlier claim and underscore XRP’s higher proportion of actively traded tokens relative to its market cap.
XRP Cumulative Spot Volume
Moreover, Kaiko, a reputable market information provider, revealed insights on XRP’s rising prominence in the crypto market, as The Crypto Basic reported.
According to the report, since the significant court ruling, XRP accounted for 21% of all crypto trade volume, outperforming BTC’s 20%. Meanwhile, Ethereum (ETH) registered only an 8% share.
This report from Kaiko and Schepens’ disclosure considers trading activity on the sport market since July 13. This does not account only for 24-hour trade volume on all markets, as BTC remains ahead of XRP. Kaiko noted that the evaluation compounded data from 25 exchanges.
Moreover, data from CryptoCompare, a market data resource, also shows that XRP is not far below BTC regarding trade volume. Notably, BTC sees $1.95 billion in volume, while XRP’s volume is $1.57 billion. Pundits believe CryptoCompare only analyzes spot volume, and XRP could have previously displaced BTC on this metric.
Similarly, The Crypto Basic recently disclosed that XRP dominated South Korean exchanges, garnering at least $2.5 billion after the US court ruled that the digital asset is not a security.
Ultimately, the recent court ruling has fueled increased interest in XRP, as the coin continues to appreciate in all metrics ever since. Over the last 24 hours, XRP trades at $0.8331 with an over 5% increase.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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