Gamza Khanzadaev
XRP sees sharp increase in market participant involvement, but reasons may disappoint
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At a time of high volatility in the crypto market, the trading volume of the popular cryptocurrency XRP has increased by an astounding 80% in the past 24 hours, and its value has soared to over $4 billion. .
CoinGlass reported that derivatives alone accounted for $2.16 billion, with the spot market adding another $1.9 billion, an increase of 55.4% from the previous day. Despite this significant increase, the token's market capitalization reached $32.5 billion, translating into a volume-to-market capitalization ratio of 12.5%, indicating active but not exceptional trading.
However, this surge in XRP trading activity occurred amidst what can only be described as a crypto disaster. Liquidation statistics revealed that $400 million worth of positions were liquidated, the vast majority (85.5%) of which were long or long positions. An even higher proportion was seen in the XRP market, where 94% of liquidated futures positions were long positions, totaling $5.47 million.
XRP price falls
This dramatic increase in trading volume coincided with a sharp drop in XRP prices, triggering stop losses and margin calls, forcing buyers to exit their positions in a hurry. As a result, token trading volumes experienced a notable spike, reflecting heightened market activity amid widespread sales and liquidations.
While the surge in XRP trading volumes is undoubtedly significant, it is essential to contextualize it within the context of the broader cryptocurrency market, which has been characterized by extreme volatility and significant losses.
Despite the impressive volume numbers, the market remains in turmoil, leaving investors at a loss as they assess the impact of the ongoing catastrophe on their portfolios and the crypto market as a whole.
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Gamza Khanzadaev
