Institutional Interest Boosts Ripple’s XRP Trading Volumes in Q3
Ripple reported a strong third quarter, driven by rising institutional interest in its XRP token and increased transaction volumes on the XRP Ledger. Activity surged due to major financial players like the Chicago Mercantile Exchange (CME) and Bitwise, which introduced new XRP-related products. Although many transactions were low-value microtransactions, heightened institutional focus significantly boosted trading volumes.
The shift towards XRP is partly attributed to diminished credibility of the U.S. Securities and Exchange Commission (SEC) within the crypto space. As Ripple engages in a legal battle with the SEC, several financial firms have launched XRP-centered products. The CME introduced a reference price for XRP, while Bitnomial plans to offer XRP futures. Bitwise, Canary, and 21Shares seek approval for exchange-traded funds (ETFs) linked to XRP, and Grayscale aims to launch an XRP Trust and convert its Digital Large Cap Fund into an ETF.
Ripple’s CEO, Brad Garlinghouse, noted strong demand for XRP, citing weakened SEC authority due to ongoing regulatory challenges. He stated, “The market has made it clear — institutional demand for XRP products is stronger than ever,” highlighting the SEC's eroded credibility.
Ripple’s report indicated a rise in average daily volumes (ADV) on major exchanges, with XRP/BTC trading volumes increasing by 27% over the quarter. Key exchanges such as Binance, Bybit, and Upbit recorded significant trading activity, with average volumes peaking early in the quarter before stabilizing and increasing again toward the end of September. Over Q3, transaction volume on the XRP Ledger doubled from Q2 levels, largely fueled by small transactions under 1 XRP, which were likely part of a spam campaign. Despite the increased transaction count, total on-chain volume did not rise proportionally due to the prevalence of small-volume microtransactions.
Ripple’s Automated Market Makers (AMMs) experienced Total Value Locked (TVL) more than doubling during the quarter. While transaction volume surged, average transaction fees decreased by about one-third, making transactions cheaper for users.