XRP Overtakes Ethereum (ETH) in Trading Revenue on Coinbase, Achieves a Milestone

The surge is mainly due to increased trading, growing institutional interest, and excitement about a potential XRP spot ETF.

In a significant development, XRP has achieved a remarkable milestone by surpassing Ethereum (ETH) in trading revenue on Coinbase.

This surge can be primarily attributed to increased trading activity, growing institutional interest, and anticipation surrounding a potential XRP spot ETF.

XRP Now Contributes 14% to Coinbase Revenue

Kaiko's recent analysis reveals that XRP's contribution to Coinbase's trading revenue has experienced a substantial increase, reaching a 14% share in Q4.

Specifically, the post-U.S. election rally has reignited interest in altcoins, with XRP emerging as a top performer. This trend follows its re-listing on major U.S. exchanges after Ripple Labs partially prevailed in its legal battle against the SEC.

Growing institutional interest in XRP is evident with asset managers preparing for spot XRP ETFs. Last week, the SEC announced the receipt of multiple XRP ETF filings, initiating a 240-day period for approval or denial. This clear timeline has sparked further speculation and a surge in trading activity.

XRP's Bullish Signs Mirror Ethereum's ETF Rally

A similar scenario unfolded during Ethereum's May 2024 rally, where its volumes surged following the SEC's unexpected approval of spot ETH ETFs.

If history repeats itself, traders can anticipate another significant rally. Adding to the bullish outlook, the TD Sequential indicator has generated a buy signal for XRP on the hourly chart.

This indicates a potential short-term rebound, which could further amplify investor enthusiasm. With market depth returning to pre-FTX levels and favorable liquidity rankings, the token appears poised to continue its upward trajectory.

Macro Trends Favorable for Crypto Market Growth

Separately, macro trends are supporting broader crypto market growth. South Korea is planning to lift its institutional ban on crypto trading by 2025. Currently, only retail traders with verified identities can engage with digital assets, limiting institutional liquidity.

Once lifted, hedge funds, corporations, and universities could add new liquidity to the market, further enhancing XRP's trading volume.

As XRP maintains its lead in trading revenue, positive regulatory updates, and growing institutional adoption, the next few months will showcase whether XRP will sustain this lead or encounter new competition.

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