XRP Volume Dives Amid Shift to Collateral Use

XRP's trading volume has fallen sharply compared to previous major market activity periods, but crypto analyst Dark Defender believes the decline requires closer examination. According to a recent tweet from Dark Defender, XRP's trading volume has declined significantly since its peak in 2021, with the token now trading around the $1 level.

A 12-year chart of XRP's volume shows periods of significant activity in 2017 and 2021, followed by a prolonged decline that has brought volume close to its lowest levels. Dark Defender notes that this decline is not necessarily due to a lack of market interest, but rather changes in XRP's circulating availability.

Exchange reserves have declined from approximately 4 billion XRP to about 1.6 billion XRP, an eight-year low, according to Dark Defender. Additionally, 992 million XRP are held through U.S. spot ETFs and are considered unavailable for regular market circulation.