Why XRP was the most-traded altcoin in August

Posted: September 9, 2023

• XRP was the worst-performing altcoin in August.
• Offshore exchanges spurred promoting stress, whereas U.S.-based platforms noticed shopping for demand.

The thrill of the partial victory within the hotly contested authorized battle towards the U.S. Securities and Trade Fee (SEC) had been short-lived, as Ripple [XRP] practically reversed all of the features within the August drawdown.

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At press time, the payment-focused crypto misplaced practically 21% of its worth over the past month, knowledge from CoinMarketCap revealed. Furthermore, the collapse made XRP the worst-performing altcoin within the aforementioned interval.

XRP outpaces different alts in buying and selling quantity

Suffering from unfavorable sentiment, XRP merchants rushed to lock in features. As per crypto market knowledge supplier Kaiko, XRP recorded considerably greater buying and selling exercise in August vis-à-vis different alts.

In actual fact, XRP’s common each day quantity throughout the month was a whopping $462.8 million, 4x occasions greater than the next-ranked Solana [SOL].

Supply: Kaiko

Offshore exchanges drive sell-offs

Apparently, the majority of the promoting stress was exerted by non-U.S. primarily based exchanges, in response to a latest report by Kaiko. Upbit, South Korea’s largest trade and OKX had a promote quantity ratio of over 50%.

Supply: Kaiko

It needs to be recognized that XRP is essentially the most traded altcoin on offshore exchanges. It sees excessive demand in South Korea, particularly, and merchants within the East Asian nation have traditionally exhibited a higher affinity for the token.

To additional elucidate this, XRP was the most-traded altcoin and the second-most traded crypto asset on Upbit, the nation’s premier trade, per knowledge from CoinGecko.

U.S. exchanges see shopping for demand

Alternatively, buying and selling exercise on U.S.-based exchanges like Coinbase was pushed by consumers. Kaiko acknowledged,

“This might counsel that purchasing demand was pushed by giant merchants within the U.S. as traders re-gained entry to the token after the July courtroom ruling.”

The above assertion was corroborated by knowledge from Santiment. Huge whales, comprising the cohort holding between 100,000 to 10 million XRP tokens, have been steadily including on to their portfolios over the past week.

Supply: Santiment

Learn Ripple’s [XRP] Price Prediction 2023-24

It was pertinent to notice that not like offshore exchanges, XRP was solely the sixth most traded altcoin within the U.S., per Kaiko.

XRP’s retail possession rises

An encouraging improvement which caught consideration was the rise within the variety of retail traders of XRP. Since final week’s dip in costs, addresses proudly owning 1–10 tokens have elevated their holdings by practically 10,000. This advised that they purchased the dip.

Supply: Santiment