TI Weekly Market Observation: XRP Soars and the Trading Sector Leads the Market

TI Weekly Market Observation: XRP Soars and the Trading Sector Leads the Market

Created 2yr ago, last updated 2yr ago

TokenInsight takes a deep dive into what has happened in the crypto market over the last seven days.

TI Weekly Market Observation: XRP Soars and the Trading Sector Leads the Market

Table of Contents

As reflected by the option-related signals on Monday, the performance of mainstream digital assets has shown obvious different trends. Ethereum once again returned to an all time high, while Bitcoin continued to trade sideways at a high level and has not yet achieved a decisive breakthrough. 
After experiencing the upsurge of NFT, non-Ethereum public chain, on-chain storage and other sectors, investors turned their attention back to the trading sector. The good news in asset trading this week has continued: BTG (Bitcoin Gold) announced its cooperation with Phala Network to build a cross-chain bridge between the Bitcoin network and the Polkadot network, KuCoin Exchange announced the introduction of Stellar deposit and withdrawal services, and the Indian Exchange WazirX announced the launch of the NFT trading market, the first time for a centralized exchange. Stimulated by a lot of good news, trading-related tokens rose as a whole.

Bitcoin Callback, Ethereum New High

Bitcoin and Ethereum no longer advance at the same time, at least for now.

Obviously, the market’s interest in Bitcoin trading is further declining: as of Apr. 9, the weekly trading volume of Bitcoin spot was only 56.5 billion U.S. dollars, while the weekly trading volume of perpetual contracts was 410.6 billion U.S. dollars, a decrease of more than 10%. The decline for Bitcoin was sustained and obvious; while Ethereum was the complete opposite, spot and perpetual contract trading volumes increased by 32.29% and 47.60%, respectively.

Changes in the trading volume of Bitcoin and Ethereum in the past 30 days, as of 16:00 on Apr. 9, source: tokeninsight.com

The volatility data further showed some additional signals.

Whether it is a Bitcoin spot or perpetual contract, its historical volatility has been in a continuous downward trend, and it is now close to 50, a new low this year. The price stability means that speculators are gradually decreasing, but it also means that as speculators gradually lose interest in Bitcoin, the vitality of the market has declined.

Historical volatility chart of Bitcoin spot and perpetual contracts since the beginning of the year, source: gvol.io

The Ethereum market remains dynamic: the volatility has begun to "bottom up," and the overall volatility level remains above 60, which is much higher than Bitcoin. In addition, from the perspective of options trading in the past week, small option contracts have become the main force in the allocation of rights in this cycle, which confirms the recent activity in the Ethereum market: most small option allocators are individual investors. When option allocation occupies the absolute mainstream, market enthusiasm is often relatively sufficient.

Changes in the historical volatility of Ethereum spot and perpetual contracts and changes in the trading volume of Ethereum options in the past 30 days, source: gvol.io
Mainstream digital asset transactions this week, source: tokeninsight.com

XRP Soars and the Trading Token Sector Takes the Lead

When Ripple was sued by the SEC, almost all investors believed that this project, which once occupied the fourth largest market capitalization in the digital asset market, had seen its end. However, its token XRP, after experiencing a drop to US$0.25, has risen to more than US$1 since February, breaking a record high since 2021. At the peak of the daily trading volume, it also reached US$10.21 billion with the price surge.
XRP price changes in the past 90 days, source: tokeninsight.com
As one of the leaders in the payment and transaction industry, Ripple's successful "resurrection" has driven the long-silent trading token sector to rise. Whether it is cross-chain, high-speed trading public chain or exchange new business, the corresponding tokens are greatly stimulated up. As of 5:30 pm on Apr. 9, the total market value of XRP reached US$46.79 billion, an increase of 78.09% compared to last week. The market value distribution of exchange certificates KCS and STX reached US$1.1 billion and US$2.2 billion, and the best performing token is Bitcoin Gold, which has recently announced to join the Bitcoin-Polkadot cross-chain project. Although it is only a legacy of the Bitcoin hard fork that year, the current token price of the project is affected by cross-chain benefits. The current market value is close to 2 billion US dollars. This is an increase of 174.75% from last week.

Trading is the core of the digital asset market, and related certificates can be regarded as long-term investment targets. However, because the short-term performance is often inferior to project certificates such as NFTs, its related transactions have been ignored by investors, especially individual investors. However, a large number of blue chip tokens are hidden in trading tokens, so dividing a part of the investment portfolio into non-mainstream trading tokens for long-term holding may have a positive effect on optimizing the long-term performance of the investment portfolio.

List of recent good token market value and changes in market value, source: tokeninsight.com
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
2 people liked this article