XRP, currently ranked as the seventh-largest cryptocurrency by market cap, has experienced a remarkable surge in trading volumes. Activity in its trading increased by 54%, marking a strong recovery attempt following a market-wide sell-off totaling approximately $225 million.
Market Faces $225 Million Sell-Off Amid Major Liquidations
The cryptocurrency market faced a sharp decline over the weekend, resulting in nearly $225 billion in liquidations in crypto-tracked futures within a 24-hour period. This included approximately $133 million in long liquidations, sparked largely by Bitcoin’s drop to a recent low of $67,444. The significant losses affected various major cryptocurrencies, which saw price declines across the board.
Related article: XRP Price Rises Following Massive Transfers by Ripple
According to CoinMarketCap data, XRP’s trading volume surged to $1.04 billion over the past 24 hours, equivalent to 2.03 billion XRP, marking a notable 55% increase. This spike in activity likely stems from increased participation, as traders responded to the recent dip and potential buying opportunities.
Broader Market Recovery Helps XRP Regain Momentum
The broader cryptocurrency market has begun showing signs of stabilization and partial recovery, with many assets moving back into positive territory. Bitcoin led this reversal, climbing above $69,000 during Monday’s trading session, boosting confidence across the crypto sector. This renewed optimism has also impacted it, attracting traders and investors eager to leverage the rebound. The heightened trading volumes have contributed to a 2.29% rise in XRP’s price, with the cryptocurrency trading at approximately $0.512 at the time of reporting.
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Ripple recently released its Q3 XRP Markets Report, which outlines the company’s perspectives on current crypto market conditions, including updates related to XRPL and XRP itself. Key points from the report reaffirm that XRP’s legal status as a non-security remains intact. Ripple’s Form C filing, submitted in response to an SEC appeal, did not challenge XRP’s status as a security. The ongoing SEC lawsuit against Ripple continues to exert influence over XRP’s price movements.
Growing Institutional Interest in XRP and ETF Applications
The report also indicates significant institutional interest in XRP investment products. Several notable firms, including Bitwise, Canary, and 21Shares, have filed S-1 forms for XRP exchange-traded funds (ETFs), suggesting an increasing appetite among institutional investors. Moreover, Grayscale has launched an XRP Trust and filed to convert a multi-coin fund with XRP into an ETF.
These developments underscore the expanding institutional support for it, as well as the growing interest in the cryptocurrency market as it recovers from recent volatility.
