By George Ward
In December 2023, the global crypto sector witnessed a historic landmark as its monthly trading volume surpassed $1 trillion. This surge marked a significant leap from the previous peak set in September 2022 at $1.03 trillion.
On-chain data showed that this milestone was achieved by major exchanges, notably Binance, OKX, UPbit, Coinbase, and Huobi.
Binance Leads the Way
During this period under review, Binance contributed 39.3% of the total trading volume ($432.7 billion), making it the exchange with the highest trading volume. Meanwhile, UPbit with 8.3% ($91.8 billion) and OKX with 8% ($87.5 billion) round up the top three.
This surge in trading activity was unexpected, given that December is traditionally slower for crypto trading. Analysts believe that the primary driver behind this frenetic activity was the collective optimism surrounding the potential approval of spot Bitcoin exchange-traded funds (ETFs).
The anticipation of these ETFs ignited market enthusiasm, indicating a bullish resurgence and defying the typical slowdown often experienced in December.
December’s Unexpected Frenzy
Furthermore, the rising optimism around spot Bitcoin ETF approvals also fueled a surge in Bitcoin’s price, surpassing $45,000. However, the optimism didn’t last long as there was a surge in liquidations following a Matrixport report stating that the US SEC won’t approve any spot BTC ETF this month.
This led to a rapid decline in Bitcoin’s value, plummeting to $43,501 per current CoinMarketCap data. The data further highlighted a 12.66% surge in the trading volume of the leading digital asset in the last 24 hours. December 2023 was a month of extremes in the cryptocurrency market, recording the euphoria of a monumental trading volume milestone and the subsequent volatility triggered by several external factors.
Rising Number Of XRP-Focused ETPs
In 2023, the crypto market witnessed a notable surge in investment inflows, especially digital asset investment products. According to a report released by CoinShares, these products recorded $2.2 billion in inflows this past year, making it the third-largest year on record.
One of the notable findings in the yearly report was the significant increase in the number of exchange-traded products (ETPs) centered around XRP. XRP ETPs inflows from 2022 doubled in 2023; while it was $8 million in 2022, it rose to $16 million by the end of 2023.
Although this surge was significant, it’s interesting to note that despite this growth, the $18 million generated by XRP ETPs in 2023 falls short of its peak achievement in 2021 with $63 million in inflows.
The report also noted that XRP ETPs rank third among altcoin ETPs, trailing behind Ethereum (ETH) and Solana (SOL). In addition, on-chain data shows that XRP assets under management reached a substantial $77 million.
Forecasting XRP ETPs In 2024
With 2024 just starting, many analysts wonder whether the Ripple ecosystem and its governance token XRP will surpass their 2023 achievements. Presently, there are several XRP-focused ETPs; notable ones include AXRP by 21Shares, GXRP by ETC Group, and the highly awaited Valour Ripple XRP ETP.
This variety sets the stage for significant advancements. Industry experts are hopeful of more XRP investment products in 2024 following the notable achievements in 2023. The 100% increase in fund inflows for XRP in 2023 has set the stage for further anticipation and speculation.