XRP Surges: Record Volumes, Toppling Ethereum on U.S. Exchanges

XRP trading volumes have surged across U.S. exchanges, reaching record highs since November 2024, according to data from crypto analytics firm Kaiko. The cryptocurrency has overtaken several major cryptocurrencies in trading demand on U.S.-based platforms.

Coinbase's latest earnings report highlights XRP's growing prominence in the crypto trading landscape. For the first time, XRP generated more trading revenue than Ethereum during the fourth quarter of 2024, accounting for 14% of total trading revenue.

The revival in XRP trading activity can be attributed to the cryptocurrency's return to major U.S. exchanges following Ripple Labs' partial victory in its legal battle against the Securities and Exchange Commission (SEC). The court ruling clarified that XRP sales on cryptocurrency exchanges did not constitute security offerings, paving the way for its relisting on prominent trading platforms.

Market data from Kaiko's liquidity rankings places XRP in third position, trailing only Bitcoin and Ethereum. The ranking system evaluates cryptocurrencies by comparing their market capitalization to their trading liquidity across various platforms. Among all digital assets, only Bitcoin, Ethereum, XRP, and Solana demonstrate liquidity levels that align closely with their respective market capitalizations.

The upswing in trading activity coincides with growing speculation about the potential approval of spot XRP exchange-traded funds (ETFs). Various asset management firms have submitted applications to launch XRP ETF products, following the successful approval of Bitcoin ETFs in January 2024 and Ethereum ETFs in May 2024.

The SEC has initiated a 240-day review process for XRP ETF applications, sparking increased interest from both retail and institutional investors. Bloomberg analysts Eric Balchunas and James Seyffart have assessed the probability of a spot XRP ETF approval at 65%. Their analysis suggests these odds could improve further if the SEC's new leadership resolves remaining lawsuits that question XRP's security status.

Trading platforms are preparing for heightened market activity as the ETF decision deadline approaches. This anticipation stems from observations of similar patterns during the Ethereum ETF approval process in May 2024, when both trading volumes and prices increased markedly following the SEC's unexpected green light.

The data shows that XRP's trading patterns