Crypto market data provider Kaiko shares good news for XRP traders. The top crypto asset has restored its market depth on the Gemini crypto exchange. Market depth is the ability of a market to withstand reasonably large market orders without materially affecting the price of the asset.
📈👀Last week, #XRP's 1% market depth on Gemini saw a brief dip as market makers pulled back post a rapid $50 price spike.— Kaiko (@KaikoData) August 15, 2023
👉Good news: depth has rebounded, steadying at around XRP 150k. pic.twitter.com/ORu9BmsJCc
As reported, Gemini announced the listing of XRP in the past week, joining the growing number of exchanges that have reintroduced XRP to their platforms.
Shortly after the listing, XRP briefly rose to $50 on the Gemini cryptocurrency platform, sending the token's market valuation over the roof — if only for a short while.
After briefly reaching those levels, prices rapidly returned to parity with the spot markets on other exchanges.
Low liquidity in the hours after XRP relisting was probably to blame for the brief price increase; during this time, a buyer may have placed an outsized market order, which was filled at a staggeringly high price.
According to crypto analyst Ali, the situation might have been triggered by a drop in market depth. The analyst noted that the XRP market depth on Gemini was so low at the time that only a $37,000 order would be required to move prices by 2%.
Kaiko throws more light on the event in a new tweet, stating that XRP's 1% market depth on Gemini saw a brief dip as market makers pulled back after the rapid spike to $50. While this might seem concerning, there is no more cause for alarm as this has now been restored.
In good news for traders, Kaiko said that XRP market depth has now rebounded and is now relatively steady.
In a related positive development, Gemini announced a big XRP giveaway called the "XRP faucet," in which it would be giving away 4,000 XRP every day at 3:00 p.m. EST until Aug. 18, 11:59 p.m. ET.