XRP Transactions Volume Surges Past $7 Billion on New Year’s Day: What’s Driving the Momentum?

XRP Transactions Volume Surge to $7 Billion After Holiday Trading Slowdown

The cryptocurrency markets usually have slow days around the end of the year and the start of the next one since traders choose to take a break and engage in other activities. The decline in trading volumes for nearly all digital assets, including XRP’s, on December 31 was indicative of this during the previous few weeks as well.

On the following day, though, the scenery took a new turn. Ali Martinez described a significant turning point for XRP, demonstrating how transactions surged to more than $7 billion on January 1. Since there was far less activity in the days before and after that date, this was the greatest level in at least a month.

Transaction Volume Drives XRP Price to $2.5: A Bullish Signal or Pump-and-Dump Risk?

If this trend continues, it might be regarded as positive for XRP price movements. As was indeed the case at the beginning of the year, a single spike followed by a decrease could cause instantaneous but short-lived price spikes. Within the first few days, the asset increased from about $2 to $2.5. However, it is now down to $2.4 daily.

According to ChatGPT, XRP might profit from such sustained spikes in transaction volume, but only under specific circumstances. These include the general sentiment of the market, the growing demand and usefulness of the underlying token, and the relationship between XRP and more general market movements. The AI chatbot did caution, though, that while such huge transaction volumes could momentarily raise prices, if speculation is the only factor driving them, the price could abruptly correct—a risk known as pump-and-dump.

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