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    XRP Analysis: Top-Traded Altcoin on Binance as Wallets and Interest Soar

    XRP dominates Binance trading in December with $116.6M volume, rising wallets, and 253% annual price growth.

    Updated Dec 23, 2024
    Victor Muriki

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    Victor Muriki

    XRP Analysis: Top-Traded Altcoin on Binance as Wallets and Interest Soar

    XRP has emerged as the most traded alternative cryptocurrency on Binance this December, according to data from CryptoQuant analyst JA Maartunn. 

    The cryptocurrency generated over $116.6 million in trading volume on Binance Futures, showcasing strong trader interest despite a challenging market environment.

    The broader cryptocurrency market saw significant declines over the past week, with both Bitcoin and altcoins experiencing price drops. However, Maartunn expressed optimism about XRP’s ability to recover “relatively quickly,” despite recent losses. 

    XRP was trading at $2.19 at press time, with a 24-hour trading volume of $10.12 billion. The token has seen a -1.41% decline over the past 24 hours and a -11.08% drop in the past 7 days, placing its market cap at $125.29 billion.

    Derivatives Data Indicates Mixed Market Sentiment

    XRP’s derivatives market has shown increased activity, reflecting heightened volatility. Trading volume surged by 34.10% to $7.72 billion, signaling strong trader participation. However, open interest fell slightly by 1.23% to $1.92 billion, suggesting some traders have closed positions despite the increased activity.

    Meanwhile, options activity has seen notable growth, with volume rising by 17.41% and open interest increasing by 16.20%. This suggests traders are positioning for large price movements, either as a hedge or speculative bets. 

    Source: Coinglass

    Long/short data reveals mixed sentiment, with the global ratio at 0.9673, leaning bearish. However, Binance (2.89) and OKX (2.01) show a strong long bias, especially among top traders.

    Volatility Leads to $7.56M in Liquidations

    Recent market movements led to liquidations of $7.56 million in 24 hours, with $4.86 million in longs and $2.70 million in shorts being liquidated. This data reflects the current bearish trend, as long positions faced heavier losses.

    Despite this, top traders on Binance and OKX continue to exhibit bullish sentiment, maintaining strong long positions. This contrast suggests that while short-term sentiment appears bearish, some traders remain confident in XRP’s potential for price recovery.

    XRP Sees Growth in Wallet Numbers and Investor Interest

    Data from Santiment shows an increase in XRP wallet holders, reflecting a broader trend of rising cryptocurrency adoption. Over the past two years, XRP’s number of nonempty wallets expanded by 5.75 million, marking a 28% increase.

    CoinGecko data reveals XRP’s price has risen by 253% year-on-year, showcasing growing investor interest. This growth in both wallet numbers and price aligns with a broader increase in cryptocurrency adoption, with similar trends observed in Bitcoin, Ethereum, and Tether. 

    XRP’s resilience and rising popularity continue to position it as a key player in the digital asset space.

    FAQs:

    Why is XRP the top-traded altcoin on Binance?

    XRP generated $116.6M in trading volume, driven by strong trader interest and market volatility.

    What is XRP’s recent market performance?

    XRP is priced at $2.19, with a -11.08% weekly drop but rising derivatives activity.

    How has XRP adoption grown?

    XRP wallets increased by 5.75M in two years, alongside a 253% yearly price growth.

    Victor Muriki

    Victor Muriki

    Editor

    Victor Muriki is an esteemed writer focused on cryptocurrency and finance, holding a Bachelor's in Actuarial Science. Known for his sharp analysis and insightful content, he has a strong command of English and is skilled at conducting in-depth research and ensuring timely delivery.

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