Prominent crypto analysis agency Kaiko stories that the XRP token recorded spectacular commerce quantity strides throughout August 2023. This growth comes amidst the token poor worth efficiency within the mentioned month.
XRP Dominates Altcoin Market In Trade Volume Amidst Price Downtrend
According to the latest Data Debrief by Kaiko on September 4, the market analysis agency notes that XRP recorded a median each day commerce quantity of $462.8 million in August, representing the very best worth of that metric within the altcoin market.
Solana (SOL) adopted in second place, with a commerce quantity of $128.4 million. Other altcoins that additionally skilled a big common each day commerce quantity in August included Binance Coin (BNB), Dogecoin (DOGE), and Litecoin (LTC), amongst others.
Source: Kaiko
As earlier said, XRP’s surge in buying and selling quantity was accompanied by underwhelming market efficiency. Kaiko notes that the altcoin skilled a 25% worth decline in August.
This detrimental worth efficiency was in much contrast to July, throughout which XRP had recorded lofty features following Ripple’s partial victory over the United States Securities and Exchange Commission (SEC).
Why Is The XRP Price Struggling?
To clarify the distinction between XRP’s detrimental worth efficiency and its surging commerce quantity, Kaiko has supplied some fascinating, in-depth evaluation.
According to the analysis agency, the court docket ruling in July led to a big demand for XRP by US merchants, as was seen in the token’s price movement. Kaiko famous that the XRP average trade size on Coinbase, the biggest US crypto trade, skilled a big increase, surpassing all prime ten altcoins.
However, this large XRP demand was solely current within the US. Kaiko states there was excessive promoting stress on overseas exchanges, indicating that almost all traders offered off their tokens to capitalize on XRP’s features from its court docket victory.
In specific, Kaiko reported that the South Korean exchanges Upbit and OKX recorded the strongest XRP promoting stress for August.
Kaiko notes that the XRP’s buying and selling quantity is larger on overseas markets than on US exchanges. The analysis agency reported:
Overall, the share of XRP traded on U.S. markets stays decrease than on offshore exchanges. XRP is just the sixth most traded altcoin within the U.S. by cumulative commerce quantity, whereas it tops the record on offshore markets.
Therefore, the excessive demand for XRP within the US was overwhelmed by larger promoting stress on the worldwide market, which explains why the XRP market worth took a nosedive in August.
At the time of writing, XRP trades at $0.503, having gone up by 0.17% within the final day primarily based on data from CoinMarketCap. However, the fifth-largest cryptocurrency remains to be within the pink zone and is down by 2.28% and 19.70% on the weekly and month-to-month charts.
XRP buying and selling at $0.5019 on the each day chart | Source: XRPUSD chart on Tradingview.com
Featured picture from CoinMarketCap, chart from Tradingview.
