XRP Trade Volume Hits Six-Year Low, A Cause For Concern?

Share this post on:

A significant dip in XRP daily trading volume has caught the attention of investors and analysts alike. On Thursday, XRP’s trading volume plummeted to levels not seen in the past six years, a development that has raised eyebrows among crypto enthusiasts.

Just XRP Or Industry-Wide Slump In Trade Volumes?

Reputed lawyer and XRP advocate, Bill Morgan, took to X (formerly Twitter) to shed light on this concerning trend highlighted by WrathKahneman. According to WrathKahneman, the trading volume of XRP on December 21 stood at approximately 1.9 billion, a stark contrast to the $2.4 billion witnessed in 2022 and drastically lower than $19.3 billion recorded in 2020.

This decline has sparked a debate over the implications for the token’s market dynamics and investor sentiment. While the decline in XRP’s trade volume has become a focal point for discussions, it is important to note that this trend isn’t isolated to XRP alone.

Mr. Huber, a recognized figure in the crypto world, pointed out that leading cryptocurrencies such as Bitcoin and Ethereum are also experiencing similar plunge in trade volumes. This broader market trend suggests a possible shift in the trading activities across the crypto landscape.

Media reports corroborates Mr. Huber’s assertion, indicating that Bitcoin’s trade volume as of August 28, 2023, had reached its lowest in four years. This pattern, reflected across multiple major cryptocurrencies, hints at a more complex market dynamic that extends beyond XRP.

XRP’s Current Market Performance

Despite the concerns over trading volume, XRP has exhibited resilience in its market price. Over the past 24 hours, the digital asset has seen a near 1% increase, with its trading price hovering around $0.61.

XRP price is moving sideways on the 4-hour chart. Source: XRP/USDT on TradingView.com

Although it experienced a 4.6% decline over the past two weeks, XRP’s performance over the past month shows a 3.8% increase. Currently, its trading volume has continued to decline further standing at about $1.3 billion, maintaining a relatively steady state compared to last Friday’s $1.2 billion.

Furthermore, Mr. Huber’s observation that the downturn in trading volume isn’t unique to XRP was echoed by another user, MoonLambo on X. This user, responding to Bill Morgan’s post highlighting what could be either interesting or concerning, supported Mr. Huber’s view by adding, “I disagree.”

MoonLambo disclosed that there is nothing concerning and that the plunging trading volume is not unusual or worrying. They point out that considering the vast number of days (around 2,200) over the past six years, focusing on just six specific days’ data is too narrow to draw meaningful conclusions.

According to their analysis of the all-time XRP/USD price chart, they note a consistent pattern where both XRP’s price and trade volume increase as market activity heats up. This pattern has been observed consistently over a decade, not only for XRP but also for other major cryptocurrencies like BTC and ETH.

MoonLambo further assert that the current state of XRP’s volume is typical and expect a significant increase in trade volume when XRP experiences its next market rally.

Featured image from Unsplash, Chart from TradingView

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Share this post on:

Leave a Reply

Your email address will not be published. Required fields are marked *