The recent gloomy outlook in the cryptocurrency market has forced altcoins like XRP to make significant gains following Ripple‘s groundbreaking court decision against the US Securities and Exchange Commission (SEC) in July. XRP’s price dropped by 5.20% last week and by 22.6% in the last 30 days, returning to pre-decision levels.
Reasons Behind Ripple’s Trading Volume!
However, despite the sell-off, XRP’s transaction dynamics are stronger than other altcoins. According to data from cryptocurrency market research firm Kaiko, the trading volume of the fifth-largest cryptocurrency by market capitalization reached an average of $462 million last month, leaving other altcoins four times behind.
One possible reason behind XRP’s strong trading volumes is the token’s utility. XRP’s main use case is cross-border payments. Banks and many major financial institutions are increasingly using XRP for faster and lower-cost international payments. Stuart Alderoty, Ripple’s Chief Legal Officer, said that following the July decision, US banks are expected to return to using Ripple’s On-Demand Liquidity (ODL) product that utilizes XRP. This real-world application of the token introduced by Ripple could be increasing transaction activity.
“Gaining Strength from Ripple Supporters!”
Similarly, positive investor sentiment could be behind the high trading volumes of XRP. XRP has supporters who stand by the cryptocurrency, whether it is performing well or not. This unwavering loyalty can act as a catalyst for increased trading activity in a market with a downward trend. Although XRP continues to see transaction volumes, public interest in the cryptocurrency is decreasing. According to Google Trends data, online search interest for XRP has declined worldwide from its peak on July 13, reaching 7 points, and dropped to 5 points in the US as of September 6.
However, the decrease in public interest is not necessarily bad news. Some market experts suggest that the decrease in search queries could mean that the token is less expensive due to the absence of excessive enthusiasm. As the popular saying goes, “Buy when it’s boring, sell when it’s boring.” This sentiment was echoed by many market watchers on X platform. At the time of writing, XRP is trading at $0.47. It is falling below the psychological level of $0.50. According to CoinGecko data, the cryptocurrency has experienced a small decline of 5.17% in the last 24 hours.
