In a notable shift in cryptocurrency trading dynamics, XRP has surpassed Bitcoin (BTC) in trading volume on Coinbase, the Nasdaq-listed digital asset exchange widely regarded as a barometer for U.S. investor sentiment. This milestone highlights a significant resurgence in domestic interest in the payments-focused digital asset, driven by regulatory optimism, executive-level political engagement, and growing speculation around financial product innovation.
XRP Takes the Lead on Coinbase
As of mid-January 2025, XRP became the most-traded cryptocurrency on Coinbase, accounting for 25% of the platform’s 24-hour trading volume, which totaled $6.86 billion. Bitcoin followed in second place with 20%, while Ethereum (ETH) secured third. This marks a pivotal moment, especially considering Bitcoin’s long-standing dominance across most global exchanges.
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The data, sourced from Coingecko, underscores a clear change in U.S. investor behavior. Unlike Binance—where Bitcoin remains the top-traded asset but is inaccessible to American users—Coinbase offers a regulated environment that reflects genuine domestic market trends. On Binance, XRP ranks second, further validating its broad appeal beyond U.S. borders.
Why U.S. Demand for XRP Is Rebounding
XRP’s rise is closely tied to Ripple, the blockchain-based payment network it powers. Over recent weeks, multiple catalysts have reignited investor confidence:
- Post-election momentum: XRP emerged as one of the strongest performers following Donald Trump’s victory in November 2024. The pro-crypto stance of his administration has boosted sentiment across the digital asset space.
- High-level political engagement: Ripple CEO Brad Garlinghouse met with the president-elect earlier in January, fueling speculation about favorable regulatory developments for blockchain-based payment systems.
- ETF speculation: Growing chatter surrounds the potential approval of a spot XRP exchange-traded fund (ETF) in the United States—a move that could bring institutional capital and broader market legitimacy.
These factors align with earlier signals from Coinbase’s own premium indicator, which flagged a recovery in domestic demand for XRP, along with Stellar (XLM) and Dogecoin (DOGE), approximately one week prior.
Price Surge and On-Chain Growth
Since November 2024, XRP’s price has surged over 600%, reaching $3.33—the highest level since its 2017 peak. The cryptocurrency gained an additional one-third in value within just one week in January 2025, according to CoinDesk and TradingView.
This rally is not merely speculative. It is supported by strong fundamentals reflected on-chain:
- Record futures open interest: A surge in derivatives activity signals growing institutional and retail participation.
- Increasing large holder base: The number of unique addresses holding at least $100,000 worth of XRP has climbed to 108,540, per data from TradingView and CoinMetrics.
This accumulation trend suggests confidence among whales and long-term investors, indicating sustained demand rather than short-term volatility.
The Ripple Effect: From Payments to Policy
Ripple’s core value proposition lies in enabling fast, low-cost cross-border payments using blockchain technology. While the company has faced prolonged legal challenges with the U.S. Securities and Exchange Commission (SEC), recent developments suggest a thawing regulatory climate.
The SEC lawsuit, which initially cast uncertainty over XRP’s status, now appears to be nearing resolution. Market participants interpret the administration’s openness to blockchain innovation—and direct dialogue with industry leaders like Garlinghouse—as signs of regulatory clarity ahead.
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Such clarity could unlock new financial products, including custodial services, lending platforms, and most notably, a spot XRP ETF—similar to those approved for Bitcoin and Ethereum.
Market Implications and Future Outlook
The shift in trading volume leadership from BTC to XRP on a U.S.-compliant exchange like Coinbase is more than symbolic—it reflects changing investor priorities. While Bitcoin remains the benchmark for store-of-value use cases, XRP’s ascent highlights growing interest in utility-driven cryptocurrencies with clear enterprise applications.
Financial institutions and fintech firms are increasingly exploring blockchain solutions for remittances, correspondent banking, and real-time settlement—all areas where RippleNet has demonstrated proven use cases.
Moreover, the integration of digital assets into mainstream finance hinges on regulatory cooperation. With Ripple actively engaging policymakers and demonstrating compliance frameworks, XRP may be positioned for broader adoption than many of its peers.
Frequently Asked Questions
Q: Why did XRP surpass Bitcoin in trading volume on Coinbase?
A: Increased U.S. investor interest driven by regulatory optimism, political engagement with Ripple’s leadership, and speculation about a potential spot XRP ETF have fueled trading activity on Coinbase.
Q: Is XRP considered a security by U.S. regulators?
A: The SEC previously claimed XRP was an unregistered security, but ongoing legal proceedings and recent market developments suggest a possible reevaluation. Clarity is expected in the coming months.
Q: Can U.S. investors trade XRP on all major exchanges?
A: Most major U.S.-based platforms, including Coinbase, support XRP trading. However, availability may vary based on state regulations and exchange policies.
Q: What factors are driving XRP’s price increase?
A: Key drivers include rising trading volume, growing institutional interest, increased large-holder accumulation, and anticipation of regulatory approval for financial products like ETFs.
Q: How does XRP differ from Bitcoin?
A: While Bitcoin functions primarily as digital gold or a store of value, XRP is designed for fast, low-cost international payments through Ripple’s network, offering practical utility in global finance.
Q: Could a spot XRP ETF be approved in the U.S.?
A: Though not yet approved, growing regulatory openness and precedent set by Bitcoin and Ethereum ETFs make a spot XRP ETF increasingly plausible.
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Conclusion
XRP’s emergence as the top-traded asset on Coinbase signals a maturation of the digital asset ecosystem—one where utility, regulation, and macroeconomic policy converge to shape market dynamics. As U.S. investors reallocate capital toward assets with tangible use cases and improving regulatory prospects, XRP stands at the forefront of this transformation.
With price momentum, on-chain strength, and political tailwinds aligning, the current rally may be more than just a cycle peak—it could mark the beginning of institutional integration for payment-focused cryptocurrencies.
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