The latest XRP markets report from Ripple reveals that XRP saw an impressive 75% to 100% rise in trade volume in Q4 2023, surpassing other notable assets like Cardano (ADA), BNB and Solana (SOL).
In the “Deep Dive” section of the recently-released markets report, the Ripple team spotlighted data surrounding XRP’s volume, price performance and volatility throughout the fourth quarter of 2023. The team cited metrics from Bloomberg, Refinitv Eikon, and CCData.
XRP Annual ADV Jumps to $636M
Per the report, XRP’s average daily volume saw a marked increase from November 2023. Notably, daily volume averaged $300 million to $450 million in the third quarter of 2023. However, as November came, XRP’s daily volume surged by up to two times from the value recorded in Q3 2023.
This surge was a direct result of the emerging pre-bull run rally triggered by Bitcoin (BTC) in October 2023. Although trade volume slowed as the fourth quarter progressed, it remained fairly higher than Q3’s figures, averaging $600 million a day by the end of the quarter. The report stressed that XRP’s volume rose 75% to 100% QoQ.
Data from an accompanying table reveals the average daily volume (ADV) for XRP and other prominent assets across multiple timeframes. Unsurprisingly, Bitcoin and Ethereum (ETH) dominate the scene, with BTC seeing a 365-day ADV of $8.95 billion, and ETH’s sitting at $3.30 billion.
XRP’s volume was much lower than the figures recorded by Bitcoin and Ethereum. Nonetheless, XRP stood tall compared to other prominent cryptocurrencies. Data confirms that XRP boasts a 7-day ADV of $683 million and a 30-day ADV of $662 million.
In addition, the crypto token’s 365-day ADV stands at $636 million. This figure is almost three times the value BNB recorded. With a 365-day ADV of $233 million, BNB towers above other assets, but does not match the volumes of BTC, ETH, XRP and SOL.
ADA’s 365-day ADV came in at $198 million. Solana’s case was a noteworthy one, as the asset witnessed erratic data across the board. SOL saw a massive growth in ADV in Q4, crossing the $1 billion mark. However, its 365-day ADV stood at $507 million, lower than XRP.
Increased Volatility
Meanwhile, the report spotlighted the increase in XRP’s realized volatility at the start of Q4 2023. Interestingly, realized volatility collapsed to a three-month low around 45%. However, from November, volatility picked up, surging close to the 90% mark before slowing down.
XRP’s realized volatility eventually steadied at the 60-70% range for the rest of the third quarter. The Ripple report attributed this rise in volatility to the broader market resurgence that picked up in November 2023, as market participants prepared for the approval of spot Bitcoin ETFs.
In addition, Ripple found that market participants preferred to trade XRP with stablecoins than with fiat currencies. Notably, most XRP trades were against stablecoins, with USDT taking a large chunk of the volume.
Lastly, Binance lost a large share of its XRP trade volume to other centralized exchanges in Q4 2023. The crypto exchange has seen an exodus of traders amid its legal concerns.
According to data, traders moved their XRP trading from Binance to other exchanges, including Coinbase, Bybit, OKX and Upbit. Nonetheless, Binance still commanded the largest share of XRP trade volume in Q4 2023.
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