XRP trading volume explodes with 1,300% increase as crypto exchanges join

In a long-awaited decision, Judge Torres ruled in favor of XRP yesterday in his case against the US Securities and Exchange Commission (SEC). The ruling is a positive development for the cryptocurrency industry, especially with attention focused on whether digital assets should be deemed securities in the US.

Hopefully this decision will set a precedent for the industry going forward. This is positive for both altcoins and the wider industry, as the default expectation is that these assets will not be considered securities until they are made available to the public.

The event will likely have a cascading effect on the ongoing legal cases and may help to restore confidence in the industry for developers and attract more liquidity into the ecosystem.

XRP Defies Expectations With Massive Price Growth and Trading Volume Spike

Following this news, XRP saw an increase in price, reaching $0.93, the highest price since May 2021, and closed at $0.82.

According The news sparked a flurry of trading activity, with XRP trading pairs on centralized exchanges (CEXs) recording a total volume of $6.05 billion on the day, a 1351% increase from the previous day, according to data compiled by research company CCData.

The re-listing of the asset on other centralized exchanges including Coinbase, Kraken and Gemini also contributed to the increase in volume.

The news surrounding the decision saw XRP gain nearly 100% daily, while other tokens like Solana (SOL) and Cardano (ADA), which have recently been considered securities, saw significant gains of 35% and 28%, respectively.

Despite the negative backdrop that XRP has faced due to the lawsuit, its Year-to-Date (YTD) Liquidity of Market Depth at the 1% level remains resilient. XRP’s bid/ask depth of 1% at the yearly open was 26.5 million XRP, showing a gap of 0.41% throughout the year and holding strong at 25.1 million XRP on July 12.

Derivatives data shows positive sentiment

According to the report, derivatives data indicates that the positive funding rate for XRP has remained stable over the past few days, in line with broad positive market sentiment.

News of the lawsuit generated a significant increase in speculative interest on the bid side, with an increase of $280 million in open interest across exchanges from $635 million to a high of $913 million. In addition, the funding rate reached over 0.03% across all exchanges, more than three times its baseline level of 0.01% prior to the announcement.

On the other hand, XRP’s funding rate history shows that speculators trading perpetual contracts are favoring the upside, spending at least some of this year in negative funding rate territory.

This underscores traders’ positive sentiment for XRP, which was rewarded with a large price increase due to the recent announcement. While it remains to be seen whether XRP will maintain its extremely positive funding rate, it is currently a good benchmark to gauge positive sentiment within altcoins, given the attention and volume.

Considering the success of the trial, the implications for the market are overwhelmingly positive, and the verdict provides clarity that was not present prior to the verdict.

According to CCData, some trends may emerge in the market, such as coins holding securities well and potentially underperforming and a decline in bitcoin dominance as an overall percentage of market capitalization. There is potential, given the renewed optimism in altcoins.

Despite the recent surge in positive sentiment and renewed confidence from investors, XRP has experienced a significant price drop. After coming close to reaching the $1 mark, which has not been seen since November 2021, XRP is currently trading at $0.7002, showing a decline of over 11% over the past 24 hours.

Featured Image from Unsplash, Chart from Tradingview.com