Why altcoin volumes struggle to soar despite Ripple ruling buzz
- Altcoin trading level has fallen below its earlier year level.
- XRP, which sparked a minor rally, has also retraced in volume and price.
Some observers thought the ruling on Ripple [XRP] could potentially trigger an increase in altcoin trading volume. Despite the anticipation surrounding the ruling, recent data indicated that altcoins did not experience any noticeable impact.
How much are 1,10,100 XRPs worth today
Altcoin volume fails to rise despite Ripple buzz
According to a post by Kaiko on 23 August, there has been a noticeable decrease in altcoin trading volume compared to the volume observed at the beginning of the year. The accompanying chart illustrated that this decline began around May and has not experienced any significant recovery since then.
Interestingly, the Ripple XRP ruling, which generated considerable attention, had limited impact on boosting the altcoin trade volume back to its earlier year levels.
Even with the $XRP ruling, altcoin trade volume has struggled to reach levels from earlier this year.
Will this turn around as we move into the Fall? pic.twitter.com/oJID60o7qh
— Kaiko (@KaikoData) August 23, 2023
In July, the U.S. District Court for the Southern District of New York ruled that the sale of Ripple’s XRP tokens on exchanges and through algorithms did not meet the criteria for investment contracts.
However, it did acknowledge that these tokens’ institutional sale violated federal securities laws. Despite this ruling, the SEC maintains its stance on the matter and has recently been granted permission to file an interlocutory appeal.
Possible reasons for the Altcoin volume stall
The diminished trade volume of altcoins could be attributed to various factors, and one key influence might be the actions taken by the SEC. In June, the SEC initiated legal action against Binance and Coinbase, alleging several violations, such as unregistered token offerings and sales and operating without proper registration as an exchange or broker-dealer.
Notably, these legal actions also led to the inclusion of various altcoins in the category of securities within the ongoing lawsuits against these exchanges. This expansion of securities classification encompassed approximately 67 cryptocurrencies. The ongoing regulatory developments and challenges stemming from these actions could certainly be contributing to the subdued enthusiasm surrounding altcoin trade volume.
Furthermore, the broader market has endured an extended period of bearish sentiment, marked by declining prices. This trend has been especially evident in the price trajectory of XRP.
Spikes and drop in XRP’s volume and price
The ruling in June ignited a surge in XRP trading volume, which was evident from the volume chart provided by Santiment. The volume experienced a notable spike, exceeding 5 billion and later surging past 23 billion at a certain point.
While a few other altcoins also witnessed increased trading volume, the overall impact on altcoin volume remained limited. Nevertheless, the chart indicated that the trading volume has returned to its typical range. At the time of writing, the volume had stabilized around 1.1 billion.
Realistic or not, here’s XRP’s market cap in BTC terms
Furthermore, the price trend on the daily timeframe chart revealed that XRP had retraced back to its pre-ruling level. As of this writing, it was trading at approximately $0.52, exhibiting a minor decline in value.
Regarding the regulatory landscape, the ongoing cases involving Binance and Coinbase and the continuing legal proceedings against Ripple are anticipated to play a pivotal role in shaping the trajectory of altcoin trade volume.