Following Ripple’s partial win against the US SEC on a lawsuit regarding the classification of XRP as a security, XRP has dominated the broader crypto market regarding trading volume.
Notably, some of its market capitalization has towered over Bitcoin (BTC) as the cryptocurrency with the highest trading activity.
Also, Ripple’s XRP token recently recorded a massive $10 billion trading volume in a 24-hour after Judge Torres’ ruling that XRP sales to retail investors aren’t considered security.
Reviewing the Claims
Recently, Dirk Schepens, the founder, and CEO of xSPECTAR, an XRPL-based NFT platform, announced the massive surge in XRP’s trading volume on Twitter.
He stated that XRP’s trading volume had crossed that of Bitcoin (BTC) as the digital asset with the most trading activity since last week’s court ruling.
While many in the crypto space questioned and countered Schepen’s announcement, David Schwartz, CTO at Ripple Labs, responded with an insightful perspective.
Schwartz revealed that XRP’s current trading volume by market capitalization is about four times that of BTC, which leaves room for various interpretations.
According to the data from CoinMarketCap, Ripple’s XRP token has seen impressive trading activity in the last 24 hours. Its trading volume was a staggering $3,574,053,006, while its market capitalization was $44,039,920,411.
In comparison, Bitcoin’s native coin (BTC) recorded a trading volume of $11,398,188,517, with a market capitalization of $584,497,409,360. To verify Schwartz’s statement, we need to evaluate the trading volume in the percentage of the market capitalization for both BTC and XRP and contrast the results.
The Crypto Basic simplified the mathematical evaluation in the image below:
A careful consideration of the number shows that XRP’s trading volume in relation to its market capitalization is exactly 8.12%. But in contrast, BTC’s trading volume as a percentage of its market capitalization is 1.95%, which is significantly lower.
These numbers support Schwartz’s earlier assertion and highlight XRP’s larger percentage of actively traded tokens than its market valuation.
Overall XRP Spot Volume
However, Kaiko, a popular market information provider, revealed insights into the token’s rising dominance in the broader cryptocurrency market.
Its report revealed that, since the recent court ruling, XRP has contributed over 21% of the entire trade volume, surpassing BTC’s 20% ratio. In the meantime, Ethereum (ETH) contributed only 8% to the broader market.
Kaiko’s report and Schepen’s disclosure cover only trading activity on the spot market since Monday, July 13th.
This also doesn’t represent the 24-hour trade volume across all markets. According to data from CryptoCompare, BTC remains above XRP, with a trading volume of $1.95 billion above XRP’s $1.57 billion.