XRP has achieved a major milestone by surpassing Ethereum (ETH) in trading revenue on Coinbase. According to Kaiko’s latest analysis, XRP accounted for 14% of the exchange’s revenue in Q4, marking a significant increase in trading activity.
This surge is attributed to heightened institutional interest, increased market participation, and growing speculation over the potential approval of a spot XRP exchange-traded fund (ETF).
This comes against shifting market trends, especially after the digital asset was relisted on various American exchange platforms. The partial victory of Ripple Labs in its case against the U.S. Securities and Exchange Commission also aided in recovering client confidence in cryptocurrencies, which improved trading activity.
After the election, The crypto market surge boosted XRP, ranking the token among the best altcoin performers in the last few weeks.
Also Read: Here is an Important Date The XRP Community Should Look Forward to
Institutional Interest and ETF Speculation Drive XRP’s Momentum
The enhanced participation from institutional investors in the XRP market has partly demonstrated this. Asset managers have started positioning for spot XRP ETFs after the SEC acknowledged multiple applications.
The regulatory body has set a 240-day review period to approve or disapprove these funds. This has created much anticipation among traders, who are keen to know the extent of its effect on the XRP price trend.
A similar trend could be seen in the context of Ethereum when spot ETH ETFs got approval in May 2024. The approval saw a boost in trading volumes and a rise in prices that may be repeated should the SEC allow for XRP ETFs.
The reasons we see a current bullish sentiment for XRP are technical, with the TD Sequential indicator recently providing a buy signal on the hourly chart, suggesting further short-term appreciation.
Source: @ali_charts
However, the trading volume for XRP has also risen along with the depth of the market, returning to pre-FTX collapse levels. Liquidity scores are also healthy and steady, which underscores the stability of XRP and the likelihood of a continued upward trajectory.
While investors wait for decisions on regulation, XRP’s market share on Coinbase demonstrates its rising position as one of the leading assets in the cryptocurrency space.
Conclusion
XRP trading revenue on Coinbase is up dramatically, placing it ahead of Ethereum in several critical areas for the first time. Other factors include institutionalization and purely speculative involvement from exchange-traded fund (ETF) investors akin to past trends we saw with Ethereum.
With the regulatory review period nailed down, market players are waiting for more developments impacting the XRP in the coming months.
Also Read: Canary Capital’s Spot Litecoin ETF Appears on DTCC Website, Signaling Possible Institutional Demand
