Ripple (XRP) Volume Triples in Three Days. What’s Going On?

XRP, the third-largest cryptocurrency, experienced a swell of volume over the last three days. According to CoinMarketCap, XRP’s volume more than tripled from $275,000,000 on Sunday to $972,000,000 at the time of publishing.

The surge in volume indicates a flurry of buying activity for XRP, the cryptocurrency associated with Ripple, with the price soaring more than 15% to tick over the $0.5 mark.

Ripple XRP price chart
Ripple XRP price between Nov 3rd – Nov 6th, via CoinMarketCap

 

What is volume in cryptocurrency? Volume indicates how much of a particular cryptocurrency changed hands over a 24 hour period. High volume means that lots of traders are buying and selling XRP. Volume is not necessarily linked to price increase; volume will also rise when lots of selling activity occurs.

Why Did XRP Volume Triple?

There appears to be a handful of reasons behind XRP’s surge in volume, from the ongoing rollout of Ripple’s xRapid service to its expansion into new territories. Let’s look at them one at a time:

New xRapid Commercial Customer? SendFriend

Another name has been reportedly added to Ripple’s list of active xRapid partners. SendFriend is the latest company to join the roster, a service that facilitates money transfers between USA and the Philippines. SendFriend uses blockchain technology via Ripple’s distributed ledger and xRapid.

xRapid is Ripple’s cross-border payment service that actively uses the XRP token to settle payments. Although hundreds of banks are using Ripple’s network, only a handful are currently using xRapid.

Further reading: Everything You Need to Know About xRapid (Ripple’s Cryptocurrency Service)

XRP as Base Currency on Canadian Exchange

A relatively new crypto exchange in Canada, CoinField, now lists XRP as its base currency. In other words, 22 trading pairs on the exchange are now linked to XRP.

Although based in Canada, the exchange is available in 61 countries and is growing rapidly. The choice of XRP as a base currency means almost all trading on the platform will take place via the XRP token, which could increase volume further.

Ripple Expands to Dubai and Middle East

Ripple has been busy partnering with banks in the Middle East throughout 2018. They’ll now finish the year strong by opening up an office in Dubai.

Conclusion

These factors combined over the last few days to trigger a swell of momentum in the XRP market. It’s a welcome surge of activity after October marked the weakest month of trading of the year.

Learned something new in this article? Subscribe to the Block Explorer newsletter.

Ben Brown

Editor, Block Explorer News

Leave a Reply

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

This site uses Akismet to reduce spam. Learn how your comment data is processed.