Black Thursday Made Traders Turn to XRP to Exchange Currencies

News
Fri, 05/29/2020 - 10:38
Yuri Molchan
Ripple has shared data showing that when Bitcoin collapsed on March 12 and fees for BTC and ETH transactions surged, traders turned to XRP as a low-cost alternative
Cover image via stock.adobe.com
Contents

According to an article published by blockchain heavyweight Ripple, on March 12 (also known as ‘Black Thursday’), when the Bitcoin price suffered a major collapse from above $7,000 down to the $3,800 zone, the fees for transferring BTC and ETH soared almost five times.

This made traders turn to XRP as a healthy and low-cost alternative in order to exchange crypto.

Jumping to XRP to avoid skyrocketing fees

The article published by Ripple says that, according to analytical data, XRP became handy for traders when they decided to avoid high fees while trading when, on Black Thursday, BTC and ETH transaction fees soared.

Further, the article says that due to humanity going more digital recently due to the global pandemic, XRP is now preferred by digital exchanges for arbitrage trading.

It continues to outline that traders and market makers have begun actively leveraging XRP for fast serviced margin calls, as well as for managing their risks and/or collateral.

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Bitrue embraces XRP

More than one hundred and thirty crypto exchanges all over the world have already listed XRP as a base currency in pairs both with other crypto and fiat.

As a recent article on the Ripple website states, the South Korea-based exchange Bitrue has chosen to focus on XRP use in order to develop and strengthen their business.

CEO Curis Wang said in an interview that Bitrue decided to focus on XRP for its low transition costs and high speed. This enables its traders to make a profit on smaller variations in price when sending XRP between exchanges.

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today, can be contacted at yuri.molchan@u.today.

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