Crypto traders had an uneventful week in terms of digital asset investments, as trading activity dropped by 33% from the previous week. Nonetheless, CoinShares’ weekly report revealed that XRP attracted the highest influx of investors among all altcoins, with an influx of $0.8 million.
As per the report, Polygon followed closely behind with $0.3 million in inflows, while Binance and Polkadot experienced outflows of $0.34 million and $0.29 million, respectively.
In terms of regional investment, Germany saw inflows of $21 million, while the US, Canada, and Switzerland all saw outflows totaling $12.4 million, $3.9 million, and $1.5 million, respectively.
Bitcoin continued to receive positive sentiment from investors, with inflows of $8.8 million, while short bitcoin saw outflows of $2.5 million. Bitcoin’s total assets under management reached their highest level since 3 Arrows Capital’s collapse in June 2022, at $23.5 billion.
On the other hand, Ethereum experienced outflows of $2.8 million, with inflows into short-Ethereum of $0.5 million, indicating investor concern about the upcoming Shanghai upgrade and the implications it has for un-staking and yield distribution.
XRP Trading Volume Surges On Korean Exchanges
As per a report by Kaiko, XRP trading volumes have spiked on Korean exchanges, with Upbit and Bithumb seeing volumes exceed BTC and ETH at times. Last week, XRP trade volume surpassed $2 billion, which is its highest level since September 2022.
Additionally, prices have risen over 40% since March 20th. XRP perpetual futures open interest has also surged to $471 million, up from $230 million, and funding rates have turned positive, indicating that traders are mostly taking long positions.
The surge in XRP prices is mainly attributed to traders placing their bets on a potential victory in Ripple’s ongoing legal battle against the SEC, with a ruling expected in April.
However, the tick-level trade data suggests that whales are taking profit, indicating that the rally is driven by retail investors. Market sell orders for orders exceeding 200k XRP (~$95k) were overwhelmingly higher than market buys, while the buy/sell ratio was more balanced for smaller orders.
Nevertheless, while the crypto market saw less participation compared to the previous week, XRP emerged as the top performer in terms of inflows.
With the upcoming ruling in Ripple’s legal battle and increased trading volumes on Korean exchanges, the digital asset could potentially see continued growth in the coming weeks.
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