Koreans have gone crazy over XRP. The top three exchanges from that region of the world are recording above-average trading volumes. Excellent statistics can be boasted by Korbit, where XRP trading in recent days accounted for almost 50% of all trades made.
Record turnover of XRP
Cryptocurrency fever has returned to South Korea, all thanks to a surge in the value of XRP. Trading on three of Korea’s largest platforms – UpBit, Bithumb and Korbit – reached billions of dollars, as the token’s value exploded in recent days. Thus, on Wednesday, March 29, XRP accounted for 37% of total volume on Bithumb, 18% on UpBit and nearly 50% on Korbit.
UpBit recorded a record XRP trading volume of more than $790 million, slightly surpassing that of the Binance exchange. South Korean traders are notorious for pushing euphoric rallies on tokens, as manifested by Kimchi Premium – a phenomenon where BTC on local exchanges can trade at a premium of up to 30% over international counterparts, driven by local demand.
Note, however, that part of this increase may be due to wash trading, a manipulative technique in which traders buy and sell the same assets to boost volume and create a false impression of market activity.
Wash trading? – not likely in the case of XRP
The increased trading in XRP is clearly justified by recent as well as upcoming events. A key reason for interest in the token is speculation about its classification as a commodity by the US Commodity Futures Trading Commission (CFTC). It is worth noting that the CFTC has already recognized Bitcoin and Ether as commodities, paving the way for a similar classification of XRP. Such a solution could affect the outcome of the case that the US Securities and Exchange Commission (SEC) is pursuing against Ripple. Currently, the regulator claims that XRP tokens are securities, but recognizing them as commodities could turn the situation in Ripple’s favor and be bullish for the coin itself.
According to Lewis Harland, portfolio manager at Decentral Park Capital, “Optimism for a Ripple win in the SEC case is increasingly prevalent in the market, which is helping to drive up the price of XRP.”
What lies ahead for XRP in the coming period?
Both the timing of the verdict and the anticipated wording of the verdict are driving the market and contributing to clear increases in the price of the coin. We discuss all these themes in a separate article. To learn more take a look at the material under the title: “XRP is accelerating – the sleeping giant has risen and begun a rapid climb that may not end soon.”