Here’s what tens of billions in XRP trading volumes are hiding
XRP has seen unusual trading volume, which is 33% higher than the current market capitalization of the cryptocurrency. The trading volume in the last seven days is $25 billion, with a combined value of all XRP at $18.56 billion. Similar figures can only be noted for stablecoins, USDT and BUSD among the top 10 largest cryptocurrencies by market cap.
The reason for the anomalous behavior of XRP trading volumes, over time, is probably because the token is actively used by crypto company Ripple in its ODL operations, roughly speaking as fuel for the technology. According to recent reports, the company has seen an increase in ODL usage, both because the business of old partners is growing and because new ones are joining.
XRP Liquidity Is On Demand
As U.Today reports, Ripple sold XRP worth $2.82 billion through its ODL corridor in the third quarter of this year. Interestingly, Bitget and Binance accounted for the largest volume of XRP trades, and this despite the fact that several exchanges removed token trading after the SEC legal investigation into Ripple began.
There is no telling how XRP’s trading volume would change if regulators decided to recognize the cryptocurrency as a security. One of the main arguments of pro-XRP advocates is the reliance on token sales on the secondary market which, as we found out, exceeds XRP’s market capitalization.
