On December 21, 2023, XRP’s average daily trading volume hit a six-year low of $1.9 billion. This is down from $2.4 billion in 2022 and well below the $19 billion in 2020.
Crypto scouts say the trend of declining trading volume affects not only XRP, but also other tokens such as Bitcoin and Ethereum.
After XRP’s recent brief surge in value, high-profile community members noted that the token’s trading volume dropped despite increased investor confidence in the market.
Prominent lawyer Bill Morgan stated on X (formerly Twitter) that XRP trading volume on December 21, 2023 was lower than on any day in the past six years.
Morgan’s comments follow an analysis published by Ripple enthusiast Wrath of Kahneman. The analysis shows that XRP trading volume on December 21st has been on a downward trend for the past six years.
This year’s figure is lower than in 2022, when market conditions were primarily bearish. Morgan called the data "interesting or worrying."
According to the data, the highest record in the past six years occurred in 2020. At the time, XRP’s trading volume was as high as $19 billion.
Well-known crypto influencer Mr. Huber countered that concerns about trading volume may not be as serious as Morgan suggested. He noted that major crypto networks such as Bitcoin and Ethereum have also seen significant declines in transaction volume.
Mr. Huber said on Twitter: “The decline in XRP’s transaction volume is consistent with the decline in Bitcoin and Ethereum’s transaction volume. This is not a problem unique to XRP.”
Analysts further cited media reports showing that as of August 28, 2023, Bitcoin’s trading volume was the lowest in the past four years.
