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• Upbit reaches highest XRP wallet-flow dominance level in over year.
• Coinbase dominance falls to zero as XRP flows rotate.
• XRP rebound coincides with growing concentration of activity on Upbit.
The XRP market is undergoing an important transition with the concentration of exchange activity on a single trading platform. According to CryptoQuant analyst Amr Taha, Upbit’s share of XRP wallet flows has climbed to its highest level in more than a year, while Coinbase, Binance, and Crypto.com have all recorded declining dominance, highlighting a deepening rotation among major exchanges.
It has appeared at a time when XRP has bounced back from about $1.11 to $1.18. However the latest wallet-flow data indicates that the trend is not limited to price action, and is indeed a change in participation trends throughout the market. Upbit is now taking more of the XRP trading volume.Upbit now has a significant market share of XRP trading activity.
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Taha noted that the XRP Net Wallet Flow Dominance rose from 13% on 7th June to 31% on 14th June, which occurred with Upbit. The metric measures the share of transaction volume for XRP wallets that occurs on the top exchanges. Upbit’s share increased, so it became the first platform in terms of the deposit wallet flows of XRP on the platforms monitored by the CryptoQuant platform. The rise is significant as it comes in the wake of XRP’s recent resurgence. Furthermore, the chart illustrates that Upbit has been becoming stronger as it rises during the time frame while some other exchanges are declining.
South Korea has been an active market of XRP from long time ago. This makes it easy to notice the trading volume changes that occur on Upbit when the volume is significant enough to warrant traders’ interest. Taha’s data shows that the rotation was not a “short-term” one. On the other hand, Upbit’s position remained strong during the week, standing out from other leading exchanges.
Coinbase, Binance and Crypto.com Continue to Lose Ground
Upbit was on the rise while Coinbase was the top loser among the exchanges monitored. Taha says that on May 7 the dominance of Coinbase’s XRP Net Wallet Flow was 27%, while as of June 14 it had dropped to 0%. The decrease indicates that deposit activity had weakened significantly, and/or withdrawal activity grew more than deposits. Both of these scenarios would indicate that Coinbase would contribute significantly less to the overall XRP wallet flow.
Binance also experienced reduced dominance during the same time frame. It has been in decline from 16% to 13% of the share, suggesting a slowdown in activity. Furthermore, Crypto.com’s dominance fell from 9% to 3%, further emphasizing the overall trend. Notably, these exchanges were losing wallet-flow dominance as XRP rebounded. The market activity was not evenly distributed across platforms, but actually became more and more centralized on Upbit.
Market Watches Upbit as Rotation Intensifies
Trades are typically concentrated in one of the wallet domains, which is often indicated by exchange wallet-flow. As such, it may mean that the short-term market structure of XRP is shifting toward more South Korean traders dominating the market.
While wallet-flow data can’t foretell future price action, it highlights the areas where participation is growing and where it’s waning. As of now, the latest data indicates that XRP trading is increasingly consolidating around Upbit, whereas certain top global exchanges are witnessing their share dropping.
New data from CryptoQuant suggests that the latest trend in the XRP ecosystem is a continuation of a cryptocurrency exchange rotation. With the wallet-flow dominance on the highest level of its history in over a year, Coinbase, Binance and Crypto.com are moving in the opposite direction, which will likely trigger traders’ attention in the coming weeks.
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