Digital asset research firm Kaiko finds data from crypto exchanges suggest major traders in the US boosted demand for XRP after Ripple won a partial court victory over the US Securities and Exchange Commission (SEC) in July.
In a new analysis, Kaiko notes that Korean exchange Upbit and Seychelles-based exchange OKX witnessed the strongest selling pressure for XRP in August.
Kaiko also notes that Coinbase, the largest crypto exchange in the US, saw higher buying levels.
The crypto research firm also notes that the average trade size of XRP on Coinbase has increased, surpassing all of the top ten altcoins, with the exception of Ethereum (ETH).
“This could indicate that the buying demand was driven by big traders in the US, as investors regained access to the token following the court ruling in July. Overall, the share of XRP traded in US markets remains lower than on offshore exchanges. XRP is only the sixth most traded altcoin in the US by cumulative trading volume, while topping the list in offshore markets.”
The SEC sued Ripple in late 2020 because the San Francisco-based payment company sold XRP as an unregistered security.
In July, District Judge Analisa Torres ruled that Ripple’s automated, open-market sale of XRP, known as programmatic sales, did not constitute a security offering, contrary to what the SEC claimed.
However, the judge concurred with the SEC’s claim that Ripple’s sale of XRP directly to institutional buyers constituted an offering of securities.
XRP shot up from around $0.47 prior to the ruling, to a high of around $0.82 later in July. The fifth-ranked crypto asset market cap has since lost most of these gains and is trading around $0.504 at the time of writing.
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Generated image: Midjourney