XRP Skyrockets 156% in Volume Amid $930 Million Crypto Bloodbath

Sat, 04/13/2024 - 14:26
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While the broader market suffered significant liquidations and sell-offs, XRP, the seventh-largest cryptocurrency by market capitalization, had an astonishing 156% surge in trading volume.

According to CoinMarketCap data, XRP's trading volume increased by 156% in the last 24 hours, totaling $3.08 billion in trades.

Cryptocurrencies fell as the weekend approached, reflecting risk-off sentiment in traditional markets. Smaller cryptocurrency assets faced much greater losses as a result of the panic.

The slump resulted in the month's greatest leverage washout, liquidating over $930 million in leveraged derivatives trading positions across all digital assets, according to CoinGlass statistics. Some $800 million of those bets were longs betting on price increases and were caught off guard by the unexpected market crash.

XRP/USD Daily Chart, Courtesy: TradingView

As one of the oldest and most established cryptocurrencies, XRP continues to draw attention from traders and investors looking for exposure to digital assets. In the past 24 hours, XRP has been the second most traded asset on South Korea's largest cryptocurrency exchange, Upbit, after only Bitcoin.

XRP vs BTC: Legendary Trader Peter Brandt's Cryptic Comment Sparks Intrigue

That said, the surge in XRP trading volume might have been driven by speculative trading activity, as traders sought to capitalize on short-term price movements. The volatile nature of the cryptocurrency market presents ample opportunities for profit-taking and speculation, and XRP's surge in volume may reflect this heightened trading activity.

Furthermore, recent advancements in the XRP Ledger ecosystem, most notably the upcoming stablecoin launch and upgrades, could have contributed to the increase in XRP trading volume.

In a positive development, the XRP Ledger native lending protocol proposal, which would enhance its DeFi capabilities, is now up for review and feedback.

The bug fix for the XRP Ledger's automated market maker (AMM) feature was successfully integrated into the XRPL mainnet. This resolves an issue discovered on March 23 with an unexpected number of LPTokens in an AMM pool.

In a blog post, Ripple’s VP of Engineering for RippleX Brad Chase presents a detailed analysis of the issue, the timeline of the bug fix, its impact, the lessons learned and the ongoing work to prevent similar issues from occurring in the future.