- XRP has surpassed Solana in spot trading volume following the SEC dropping its case against Ripple Labs, boosting investor confidence and increasing ETF approval odds to 83% by 2025.
- With improved liquidity, rising market depth, and potential futures launches, XRP is solidifying its dominance in the cryptocurrency market.
The cryptocurrency market is witnessing a significant shift as XRP overtakes Solana (SOL) in spot trading volume. This change follows the U.S. Securities and Exchange Commission (SEC) dropping its case against Ripple Labs, which has fueled optimism regarding future financial products tied to XRP.
XRP’s Market Momentum
After the SEC’s decision to close its case against Ripple, XRP saw a notable 13% price surge. This development not only strengthened investor confidence but also boosted trading activity. Previously, Solana dominated the spot trading market, accounting for nearly 70-80% of the volume. However, XRP has now flipped the narrative, consistently securing more than 50% of the total trading volume.
ETF Speculations Fuel Optimism
One of the major catalysts behind XRP’s rising dominance is the increasing likelihood of an exchange-traded fund (ETF) approval. Analysts at blockchain analytics firm Kaiko noted that with the regulatory hurdle removed, the odds of a spot XRP ETF approval by 2025 have risen significantly. According to prediction market Polymarket, expectations of an ETF approval surged by 6% following the SEC’s move, with the probability now standing at 83%.
Ripple CEO Brad Garlinghouse recently hinted at the potential arrival of XRP ETFs in the U.S. by late 2025. At present, at least ten applications for XRP-based ETFs, including spot, leveraged, and inverse products, are under review by the SEC. Franklin Templeton, a major asset management firm, has also entered the race by submitting an application for an XRP ETF.
Increased Liquidity and Market Depth
Kaiko’s report suggests that XRP’s rising volumes are not a temporary anomaly. The token’s liquidity has improved significantly, with the average 1% market depth surpassing Solana’s. This indicates a steady increase in market participation and a potential long-term shift in trading preferences.
Moreover, recent events indicate that new financial products based on XRP might soon enter the market. Earlier this year, the CME Group mistakenly published a webpage for SOL and XRP futures. While the SOL futures have already launched, XRP’s product was delayed due to regulatory uncertainty. Now that XRP has cleared this legal barrier, its futures launch appears imminent.
With the legal uncertainties resolved and investor sentiment on the rise, XRP seems poised for further growth. The possibility of an ETF approval, coupled with increasing market depth and liquidity, strengthens its position as a dominant cryptocurrency. If the trend continues, XRP may cement itself as a top contender in the digital asset space, leaving Solana trailing behind.