Ripple Settlement Optimism Boosts XRP Trading Volume Surpassing Bitcoin on South Korean Exchanges

Trading activity in XRP outpaced that of bitcoin on South Korean cryptocurrency platforms this week, with volumes exceeding 40% on UpBit and more than 35% on Bithumb and Korbit. This surge in XRP trading indicates a notable demand for the digital asset within the country.

Despite the heightened trading volumes, some traders are cautioning about a potential correction in the near future, which could impact short-term trading sentiment.

Data from CoinGecko reveals that XRP dominated trading activities on major South Korean exchanges, surpassing the usual leaders like bitcoin and Tether’s USDT. The increased interest in XRP was also evident on global exchanges such as Binance and OKX, although it did not surpass the trading volumes of bitcoin or ether.

Additionally, there was a significant uptick in open interest on XRP futures earlier in the week, with a notable inclination towards bullish movements, as highlighted in recent reports.

Following the frenzy, normalcy returned to the market, with bitcoin reclaiming its dominance in trading volume over XRP in South Korea. This shift coincided with a broader market decline that led to a 1.9% drop in the CoinDesk 20 Index within a 24-hour period, with bitcoin and XRP experiencing respective losses of 1.3% and up to 8%.

South Korean traders are recognized for their role in driving enthusiastic rallies on digital assets, contributing to buying pressure and potentially influencing market prices.

Bradley Park, a Web3 analyst at CryptoQuant, noted the increased focus on XRP within the trading community, attributing it to heightened media coverage and discussions by influencers, particularly in light of recent SEC-related news.

The surge in XRP’s value commenced last week following announcements by traditional futures players CME and CF Benchmarks regarding the introduction of indices and reference rates for XRP.

Ripple Labs CEO Brad Garlinghouse expressed optimism in a recent Bloomberg TV interview, anticipating a prompt resolution to the legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC). This positive outlook likely bolstered market confidence in XRP, according to Ryan Lee, chief analyst at Bitget, although he cautioned about a potential downturn post the impressive market performance.

Lee highlighted the possibility of a technical correction in XRP’s price trajectory, suggesting a probable pullback in early August. Nevertheless, he emphasized the significance of maintaining key support levels, such as $0.70, to sustain the upward momentum.

Overall, the recent developments in the XRP market reflect a dynamic landscape influenced by trading patterns, market sentiments, and regulatory factors.