XRP Trading Volume Surges Past Bitcoin in South Korea Amid Market Fluctuations

XRP Trading Volume Surges in South Korea

In a remarkable shift this week, the trading volume of XRP has eclipsed that of Bitcoin (BTC) on South Korean cryptocurrency exchanges. This surge is one of the indicators of the heightened trading activity, contributing to a notable 20% increase in the token’s value during this period. Data compiled by CoinGecko reveals that XRP comprised as much as 40% of trading volumes on UpBit, the largest exchange in South Korea, and accounted for over 35% on other platforms like Bithumb and Korbit earlier this week. This trend is unusual, as typically Bitcoin and Tether’s USDT lead trading volumes, suggesting a temporary spike in demand for XRP within the region.

Additionally, global exchanges such as Binance and OKX also experienced a surge in XRP trading volumes, although they did not surpass Bitcoin or Ether (ETH). The open interest in XRP futures saw an impressive increase, more than doubling earlier this week, with a bullish sentiment prevailing among traders.

However, normal trading patterns resumed by Friday, with Bitcoin’s trading volume once again surpassing that of XRP amid a broader market decline. This downturn resulted in a 1.9% drop in the CoinDesk 20 Index (CD20) over a 24-hour period. Bitcoin lost 1.3% of its value, while XRP witnessed a more significant decline of up to 8%.

In the cryptocurrency community, South Korean traders are often recognized for their ability to ignite euphoric rallies, which can create substantial buying pressure and influence market prices. Bradley Park, a Web3 analyst at the on-chain analysis firm CryptoQuant, commented, “With daily local media coverage of XRP and influencers discussing it, there seems to be a concentrated focus on the token.” He noted that the surge in trading volume coincided with an increase in SEC-related news, which has been dominating headlines.

The positive momentum for XRP commenced last week when traditional futures giants CME and CF Benchmarks unveiled their plans to launch indices and reference rates for XRP. On Wednesday, Ripple Labs CEO Brad Garlinghouse stated during a Bloomberg TV interview that he anticipates a “resolution very soon” regarding the ongoing legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple. These remarks likely bolstered market confidence in XRP, according to Ryan Lee, chief analyst at the crypto exchange Bitget.

Nonetheless, Lee cautioned that the market could be facing a pullback following XRP’s notable performance. “The recent surge in XRP might trigger a technical correction, so there could be some degree of price pullback in early August. However, if the price can maintain above key support levels (e.g., $0.70), it may continue to rise subsequently,” he remarked.