On 10/30, XRP accounted for over 50% of total trading volume in the cryptocurrency market.

Created in 2012, Ripple (XRP), with a current total market capitalization of 40 billion USD, is now the third-largest cryptocurrency network. According to data from the past few days, the daily trading volume is showing a significant increase.

The function of XRP is to serve as a bridge between various currencies, including fiat and cryptocurrencies, as well as to be used as transaction fees for payments, enabling various currencies to be converted and transmitted in a faster and more cost-effective manner.

According to data from the crypto data tracker BitInfoCharts, in the past 24 hours as of 10/30, XRP's daily transactions now account for over 50% of all cryptocurrency transactions. Ethereum comes in second, while Bitcoin ranks third. The trading volume has even reached a historical high of 1.7 million.

The last time XRP's daily transaction volume share was this high was during the famous bull market in December 2017 in the crypto market.

On 10/21, XRP processed about 730,000 transactions per day, and just eight days later, this third-largest cryptocurrency by market cap recorded nearly 1.6 million daily transactions. This constituted over 100% growth in less than a week. This unusual growth has not been explained yet, but what is certain is:

Speculative activities in the crypto market are growing rapidly.

One of the speculations is possibly related to Ripple's upcoming Swell event next month; another possible reason is the partnership between Ripple and payment service Moneygram, perhaps exploring new ways to use XRP.

Ripple has recently made many significant moves, including announcing the opening of a new office in Washington, D.C., aiming to bring more technology to the financial world and wanting to get closer to policymakers. Ripple explained the developments by saying:

Policymakers need industry knowledge to help shape conditions that foster technological innovation, which is important. At Ripple, we look forward to continuing the dialogue with policymakers and are building a team that brings rich legislative and policy experience.

This team includes former top assistant to the U.S. Treasury Secretary, Craig Phillips, CFTC Chair Susan Friedman, senior advisor in the Treasury Department's international markets, Heath Tarbert, and former legislative assistant to congressmen, Ron Hammond.

Furthermore, in October, it was announced that Ripple joined the Blockchain Association, becoming a member of the organization to keep in touch with many regulators and lobbyists working in the field.

While we cannot confirm the reasons, with the recent strong support from the Chinese government for blockchain technology, cryptocurrency speculation has also risen, and the increase in trading volume is beneficial for the overall market.

Further Reading

• SEC Approves Blockchain-Based Stock Settlements and Welcomes the New Era
• Bitcoin Officially Included in French High School Curriculum

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