Ripple, the fourth-largest digital asset by market capitalization, has overtaken Ethereum to become the most traded altcoin in Japan.
Just like in the United States, Japan is on the verge of a banking transformation, with nearly 80% of the country’s banks planning to adopt XRP in 2025.
Recent data from SBI VC Trade, one of the largest Japanese crypto exchanges, has revealed that Ripple (XRP) has surpassed Ethereum (ETH) to become the second-most traded cryptocurrency among Japanese investors, trailing only Bitcoin (BTC). Solana (SOL) and Dogecoin (DOGE) took the fourth and fifth spots, respectively. However, while Ethereum, Polkadot (DOT), Cardano (ADA), Tezos (XTZ), and Solana are eligible for the staking program, Ripple does not make the cut.
A significant factor in XRP’s success in Japan is its longstanding partnership with SBI Holdings, a major Japanese financial conglomerate. In 2016, Ripple and SBI Holdings collaborated and established SBI Ripple Asia in order to provide blockchain-based monetary solutions to Asia. Their cooperation became even closer in 2019 when Yoshitaka Kitao, the CEO of SBI, sat on Ripple’s board of directors. Fanning the flames further, the Bank of Japan (BOJ) recently took a step in adopting XRP for cross-border payments.
Meanwhile, Japan’s Financial Services Agency (FSA) brought even more confidence to the market. In 2021, the regulator officially clarified that XRP is not considered a security. This firm stance stands in sharp contrast to the legal hurdles Ripple has been facing in the United States with the SEC. Thanks to this regulatory environment, institutions and everyday investors alike have been much more willing to embrace XRP across Japan.
One factor that makes XRP attractive is that it’s pre-mined, with a fixed total supply of 100 billion tokens, unlike Ethereum. Also, XRP offers lower transaction costs, faster settlement times, and is far less energy-intensive than Bitcoin.
CNF recently reported that cryptocurrency platform e-commerce giant Mercari operates Mercoin, officially listing XRP in its trading service, making it now the third-largest cryptocurrency after Ethereum and Bitcoin. With over 20 million monthly users on Mercari, the audience exposure of XRP is set to increase even further.
XRP ETF Set to Boost Adoption
In another development, the U.S. Securities and Exchange Commission (SEC) recently approved ProShares to launch the first-ever XRP Exchange-Traded Fund (ETF), while XRP ETF filings from Franklin Templeton, Bitwise, and 21Shares are yet to be approved by the SEC. A regulated XRP ETF would assist in providing a simpler means for institutional investors to invest in XRP. Also, on May 19th, the Chicago Mercantile Exchange will officially open XRP futures contracts.
The price of XRP currently stands at $2.30, 3.45% above the last 24 hours, and $7.28 above the last 7 days. Analysts are eyeing a $3 target as the token benefits from global adoption. Crypto analyst Ali Martinez also noted that XRP appears to be breaking out of an inverse head and shoulders pattern, with a potential upside target between $2.70 and $2.90.
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