XRP experienced a notable surge on Thursday, rising as much as 5% to reach a high of $2.41 before pulling back slightly. This upward movement coincides with a significant increase in demand for XRP on Binance, according to on-chain data.
CryptoQuant reported that traders on Binance are heavily buying into XRP, even as positions in Bitcoin (BTC) and Ethereum (ETH) are being reduced. In a recent quicktake post, CryptoQuant highlighted a dramatic divergence in futures market sentiment among major cryptocurrencies over the last 72 hours. While traders are aggressively decreasing their exposure to BTC and ETH, they are simultaneously making bold, bullish bets on XRP—indicating a sharp rotation into this altcoin.
Binance accounts for the largest share of XRP spot trading volumes. The data suggests that XRP traders on the platform are taking advantage of slight market dips to add to their positions. This behavior demonstrates strong conviction in XRP, contrasting sharply with the fear evident in BTC and ETH markets, as reflected by open interest levels.
### Positive Fundamentals Supporting XRP
Several recent developments have contributed to growing optimism around the XRP Ledger ecosystem over the past 72 hours:
– **Strategic Investment:** Ripple announced a $500 million strategic investment at a $40 billion valuation from a group of world-class institutional investors. Leading this round are funds managed by affiliates of Fortress Investment Group, Citadel Securities, Pantera Capital, Galaxy Digital, Brevan Howard, and Marshall Wace.
– **Partnerships and Collaborations:** Ripple revealed a new collaboration with Mastercard, WebBank, and Gemini to utilize the RLUSD stablecoin on the XRP Ledger. This integration aims to enable settlement of fiat credit card transactions on-chain.
– **Wallet-as-a-Service Platform:** This announcement follows Ripple’s earlier introduction of Palisade, a wallet-as-a-service platform designed to enhance user accessibility on the XRP Ledger.
– **Milestones Achieved:** Ripple USD (RLUSD) recently crossed the $1 billion milestone, while the XRP Ledger closed its 100 millionth ledger.
In addition, according to Santiment, XRP Ledger data shows that 21,595 new XRP wallets were created within a 48-hour period recently—the highest rate of wallet growth in the past eight months.
These factors collectively underline the strengthening fundamentals behind XRP and signal increased confidence among traders and institutional investors alike.
https://bitcoinethereumnews.com/tech/xrp-demand-surges-on-binance-whats-behind-it/
