XRP trading volumes soared above Bitcoin (BTC) on South Korean crypto exchanges this week, driven by heightened market activity and settlement hopes related to Ripple Labs’ legal battle with the U.S. Securities and Exchange Commission (SEC). From Tuesday to Thursday, XRP accounted for nearly 40% of all trading activity on top Korean exchanges like UpBit, Bithumb, and Korbit, leading to a significant price surge.

XRP Outperforms Bitcoin in Trading Volume

Data from CoinGecko revealed that XRP trading volume on UpBit, South Korea’s largest exchange, reached 40%, while Bithumb and Korbit saw over 35% of their trading volumes dominated by XRP. This trend is unusual, given that Bitcoin and Tether (USDT) typically lead trading volumes on these platforms, indicating a strong short-term demand for XRP in the region.

Globally, XRP also saw increased activity on major exchanges such as Binance and OKX, although it did not surpass Bitcoin or Ethereum (ETH) in volume. Additionally, open interest on XRP-tracked futures more than doubled earlier in the week, showing a bias towards bullish movements.

Market Response and Potential Corrections

Despite the surge, normal trading activity resumed by Friday, with Bitcoin’s volume once again surpassing XRP’s amid a broader market slump. The CoinDesk 20 Index (CD20) fell by 1.9% over 24 hours, with Bitcoin losing 1.3% and XRP sliding by up to 8%.

South Korean traders are known for their influence on euphoric rallies, often contributing to increased buying pressure and influencing global prices. Bradley Park, a Web3 analyst at CryptoQuant, noted that local media coverage and mentions by influencers likely fueled the trading volume spike. “There seems to have been a sudden increase in trading volume as SEC-related news has been in the spotlight,” Park stated.

Influential Developments and Market Movements

The gains in XRP began last week following developments by CME and CF Benchmarks about indices and reference rates for XRP. Additionally, Ripple Labs CEO Brad Garlinghouse’s comments during a Bloomberg TV interview on Wednesday, suggesting an imminent resolution to the SEC dispute, boosted market confidence in XRP.

Ryan Lee, chief analyst at crypto exchange Bitget, highlighted the potential impact of these developments on market sentiment. However, he also warned of a possible decline after the recent performance. “The recent surge in XRP might trigger a technical correction, so there could be some degree of price pullback in early August. However, if the price can stay above key support levels (e.g., $0.70), it may continue to rise subsequently,” Lee explained.

Conclusion

The extraordinary trading volumes of XRP on South Korean exchanges this week underscore the significant impact of market sentiment and speculative activity. As Ripple’s legal situation with the SEC inches towards a resolution, XRP’s performance will continue to be closely watched. Investors should stay informed about potential market corrections and key support levels to navigate the volatile landscape. This increased attention on XRP also suggests that market participants are anticipating major developments, which could have far-reaching implications for the broader cryptocurrency market. Moreover, the South Korean market’s response could serve as a barometer for global investor sentiment, potentially setting the stage for similar movements in other regions as the situation unfolds.