Ripple (XRP) trading volume spiked on three cryptocurrency exchanges over the past few days according to data provided by BehindTheLedger, an analysis Twitter account that tracks and analyzes the transactions carried out on the XRP ledger.
During this period, a large volume of XRP was transferred from Bitstamp crypto exchange to Bitso. On March 28, 1.27 million XRP coins were transferred from Bitstamp to a single destination on Bitso. The amount increased to 1.62 million coins the following day
The transactions carried out on these cryptocurrency exchanges are unique because Bitso facilitates transfers of cryptos between Mexico and the US while Coins.ph is the bridge between the US and the Philippines. Meanwhile, Bitstamp facilitates the USD conversion via xRapid.
According to the tweet, “the bulk of the payments, again concentrated between Thursday and Friday, went to a single destination tag which received about 2.8 mm XRP, or $880,000.” The trend continued through the weekend, with more XRP coins transferred from Bitstamp to a single account on Bitso. This observation complemented those of BehindTheLedger who tweeted saying “As Sunday starts to wind down (based on UTC times), here’s the tally for the Bitstamp -> Bitso path, past seven days. Three hundred seventy payments today, total 598,000 XRP. All went to one destination tag.”
The surge in transaction volumes saw Bitso’s XRP trading volume reach $470,000 and climb above the XRP/BTC market on Poloniex according to data obtained from Open Market Cap. Similarly, a spike in trading volume was experienced on Philippine-based cryptocurrency exchange, Coins.ph.
Price Stagnates Despite A Surge In Volume
Despite the large transaction volumes recorded on the cryptocurrency exchanges, the price of XRP has remained stagnant at the 31 cents mark. The cryptocurrency is currently up less than 1 percent against the USD over the past 24 hours
The lack of a massive increase in price could be because the XRP coins were transferred from one cryptocurrency exchange to another. BehindTheLedger pointed out that Bitso experienced a similar spike in trading volumes three months ago, which implies that it could be a company that makes bulk FX moving vast amounts of XRP at the end of each quarter. He went on adding that “It occurred to me that the last time Bitso had a spike like this was exactly three months ago. Could it be a company that makes bulk FX moves at the end of the quarter? One possibility”
Another possibility users explored was that it could be a quarterly payment to investors. Since the XRP was transferred to a single destination, both theories slated above could hold.
Ripple (XRP) Could Still Experience An Increase In Price
Despite this anomaly, Ripple which is the third largest cryptocurrency by market cap can edge higher in response to good news and favorable candlestick arrangement. Besides, more banks are adopting either the xCurrent or xRapid technologies developed by Ripple.
Last week, Federal Bank, which is the sixth largest bank in India, announced that it would upgrade and settle transactions on Ripple solutions. If they choose xRapid, then XRP would be used as a medium of exchange and prices would find the much-needed support.
Bank acceptance will as well complement another interesting by Xpring backed startup XRPL Labs. Wietse wind lab is currently working on a new payment app that would make it easier for merchants to accept XRP as means of payment. When the app is launched, it could boost the adoption of the cryptocurrency.