Ripple Settlement Hopes Pushed XRP Volumes Above Bitcoin on S. Korean Exchanges This Week

XRP’s trading volume on South Korean cryptocurrency exchanges has surpassed Bitcoin, exceeding 40% on UpBit and 35% on Bithumb and Korbit, indicating high demand for XRP in the country.

However, investors are warning that a correction could occur in the coming days, which could negatively impact short-term trading sentiment.

This week, XRP’s trading volume on South Korean crypto exchanges has outpaced Bitcoin’s {{BTC}}, which could be a symptom of the frenzy that fueled the token’s 20% rally during that period.

Data tracked by CoinGecko shows that XRP accounted for 40% of trading volume on UpBit, the country’s largest exchange, and more than 35% of trading volume on Bithumb and Korbit earlier this week. That’s unusually higher than usual leaders bitcoin and Tether’s USDT and indicative of a short-term demand for the tokens in the country.

Volumes also increased on global exchanges like Binance and OKX, but did not surpass bitcoin or ether {{ETH}}. Open interest in XRP-tracking futures reportedly more than doubled earlier this week in a bullish trend.

Normal business resumed on Friday, with Bitcoin’s volume surpassing XRP in South Korea, amid a broader market decline that saw the CoinDesk 20 Index (CD20) fall by 1.9% in 24 hours. BTC lost 1.3%, while XRP fell as much as 8%.

South Korean investors are known in crypto circles for creating enthusiastic rallies in tokens, adding to the buying pressure and potentially influencing prices.

“With the daily local media coverage of XRP and influential people talking about it, it appears that trading volume is focused on the token,” Bradley Park, a Web3 analyst at on-chain analytics firm CryptoQuant, said in a Telegram message. “There seems to have been a sudden spike in trading volume as news regarding the SEC has come into focus.”

XRP trading volumes surge on Korean exchanges this week. (CryptoQuant)

Gains in the token began last week when traditional futures giant CME and CF Benchmarks announced their index and reference rates for XRP.

Ripple Labs CEO Brad Garlinghouse said in a Bloomberg TV interview on Wednesday that he expects a “resolution very soon” in the legal dispute between the U.S. Securities and Exchange Commission (SEC) and Ripple.

The comments may have boosted market confidence in the closely related XRP token, Ryan Lee, chief analyst at crypto exchange Bitget, wrote in a message to CoinDesk on Friday. However, Lee warned that a downturn is likely ahead after the market-beating performance.

“The recent surge in XRP could trigger a technical correction, so there could be some price pullback in early August. However, if the price can stay above key support levels (e.g. $0.70), it could continue to rise later,” Lee said.