In an unexpected turn for the market, XRP, the cryptocurrency issued by Ripple, surpassed bitcoin (BTC) in trading volume on Coinbase, one of the world’s leading cryptoasset exchanges.
This phenomenon, driven by growing enthusiasm around the XRP marketreveals a temporary change in investor preferences.
According to CoinGecko dataXRP reached 25% of trading volume on Coinbase, surpassing bitcoin’s 19%, a historic figure for the cryptocurrency that now occupies third place by market capitalization.
This temporary BTC shift can be interpreted as a sign of FOMO (fear of being left out) that dominates the markets.
Investors appear to have responded strongly to the optimism surrounding XRP, with the asset reaching a new all-time high, surpassing $3.31 on some exchanges yesterday, January 16.
This price broke its previous record and cemented the cryptocurrency’s place as the third-largest crypto asset by market capitalization.
Factors driving XRP
The XRP rally is related to several key factors. On the one hand, the imminent inauguration of Donald Trump as president of the United States has raised expectations for a more favorable regulatory approach towards cryptocurrencies.
The president has promised to relax the rules in this area, which could especially benefit XRP.
On the other hand, XRP-based exchange-traded fund (ETF) proposals are gaining traction.
The United States Securities and Exchange Commission (SEC), under the leadership of Paul Atkins, a well-known defender of crypto assets, could approve these instruments.
According to JPMorgan Estimates, XRP ETFs Could Attract between 4 billion and 8 billion dollars in investments within a period of 6 to 12 months, as reported by CriptoNoticias.
The impact on the cryptocurrency market
The trading volume and rise in XRP price reflect broader optimism in the cryptocurrency market.
Bitcoin has also benefited from the bullish environment, trading above $100,000. However, the prominence of XRP on Coinbase shows that investors are diversifying their interest towards other options with high growth potential.
XRP’s rise as the leader in trading volume on Coinbase is a reminder of the volatility and dynamism of the cryptocurrency market. With external factors such as regulatory changes and the possible launch of ETFs on the horizon, XRP could remain a key player in the coming months, attracting both speculators and long-term investors.
