XRP Leads in Liquidity and Market Depth
Data from Kaiko Indices reveals that XRP and Solana (SOL) dominate in 1% market depth among vetted exchanges. Since late 2024, XRP has surpassed SOL in liquidity and now doubles Cardano’s ADA in market depth.
Key Insights:
- XRP and Solana are frontrunners for U.S. spot ETF approval due to their high liquidity, with XRP potentially launching sooner.
- XRP’s U.S. market share has grown since the SEC’s 2021 lawsuit, while Solana’s share has declined.
- A 2x XRP ETF launched by Teucrium has amplified XRP’s momentum, despite cautious signals in the options market.
Why XRP Stands Out
Unlike Bitcoin, which secured ETF approval after Grayscale’s legal win, XRP lacks a strong futures market and relies heavily on offshore trading volume. However, its U.S. spot market share has rebounded to post-2021 lawsuit highs, while SOL’s share has dropped from 25–30% (2022 peak) to 16%.
Recent Developments:
- Teucrium’s 2x XRP ETF debuted with $5M+ in daily volume, becoming the provider’s "most successful launch."
- Analysts suggest XRP’s improving market dynamics position it ahead of competitors like Litecoin (LTC) for ETF approval.
👉 Why XRP’s ETF Approval Could Reshape Crypto Markets
Market Sentiment and Regulatory Timeline
Despite strong fundamentals, Deribit’s options market shows caution, with a bearish skew in implied volatility for April expirations. The SEC has acknowledged multiple XRP ETF filings, with Grayscale’s application facing a critical May 22 deadline.
FAQs
Q: Why is XRP a strong candidate for a spot ETF?
A: XRP’s deep liquidity, rising U.S. market share, and the success of Teucrium’s 2x leveraged ETF strengthen its case.
Q: How does XRP differ from Bitcoin in ETF approval?
A: Unlike Bitcoin, XRP lacks a futures market and relies on offshore volume, requiring a different regulatory approach.
Q: What’s the deadline for Grayscale’s XRP ETF?
A: The SEC must decide by May 22, marking a pivotal moment for XRP’s ETF prospects.
👉 Explore Crypto ETF Trends in 2025
Analyst Note: While XRP and SOL lead in liquidity, regulatory clarity remains key. The Teucrium ETF launch signals growing institutional interest, but options traders remain cautious.