A prominent XRP community figure has shared why he believes XRP price has not exploded despite impressive inflows from South Korea.
Notably, the South Korean market has continued to witness massive XRP flows into Upbit, the largest crypto exchange in the country. Game developer and market pundit Chad Steingraber has been repeatedly highlighting this trend, which recently picked up over the past few days.
South Korean Traders on Upbit Banking on XRP
Earlier, The Crypto Basic highlighted some of these spikes in inflows as well as a comparative surge in volume on Upbit. For instance, at some point on July 7, XRP saw $1.94 billion in volume on the South Korean exchange over the span of just one hour, representing an exponential surge from typical figures.
For context, average XRP volumes over an hour typically range from $5 million to $15 million across different exchanges, even on Binance, the world’s largest crypto exchange by volume. As a result, the $1.94 billion figure from Upbit on July 7 was an anomaly that could not be ignored.
In addition to this volume incident, the market also observed a massive increase in netflows into Upbit. Particularly, at some point on July 7, Steingraber highlighted that Upbit had seen a net inflow of $1.58 billion over an hour. This represents an over 52,000% increase from average net inflows in a similar timeframe.
Today, this trend has persisted. Current data indicates that Upbit has continued to lead the charge in XRP volume and inflows. Over the past hour, Upbit has recorded $94.88 million in volume and $43.25 million in net inflows.
Why XRP is Not Reflecting This Trend
However, XRP’s price appears not to be reflecting this trend of growing volume and netflows. In his most recent update, Steingraber revealed what he believes could be the reason behind XRP’s slow growth when compared to the pace at which it is observing inflows on Upbit.
Specifically, while South Korean investors on Upbit are contributing to inflows, the rest of the global market is neutralizing the impact of these inflows by recording higher outflows.
For context, Binance, Coinbase, Bybit, and other top destinations for XRP trading have continued to witness outflows over the past few days. At the time of Steingraber’s disclosure, overall netflows globally amounted to -$8.82 million.
According to the latest data from Coinglass, the market witnessed a mild positive netflow of $3.2 million yesterday, as Upbit’s inflows narrowly edged out the outflows from other exchanges. Interestingly, this was not the case on July 7 and 8, when the market respectively saw -$43.19 million and -$8.68 million in netflows despite Upbit’s large inflows.
Steingraber believes these negative netflows triggered by other top trading destinations are the reason XRP’s price has lagged. Notably, XRP has still observed an impressive price increase this week, up over 6% in the past seven days, as it trades for $2.33. However, some believe its price should have spiked higher than this.
Meanwhile, it is important to note that despite the bullish sentiments, the Upbit inflows do not automatically translate to capital flows into the XRP market, as they merely represent deposits to the exchange. As a result, they will not always lead to price spikes.
DisClamier: 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 opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
