Promising news emerges for traders invested in XRP as cryptocurrency market data provider Kaiko reveals positive developments regarding the cryptocurrency’s market dynamics on the Gemini exchange. The crucial aspect of market depth, defined as a market’s ability to absorb substantial orders without significantly impacting the asset’s price, has been restored for XRP on the Gemini platform.
The recent announcement by Gemini of its XRP listing has added to the growing list of exchanges that have reintroduced XRP to their trading offerings. This development was followed by a notable surge in XRP’s valuation on the Gemini exchange, briefly propelling the token’s price to an impressive $50. However, this surge was short-lived, as prices swiftly normalized, aligning with spot market prices across other exchanges.
The initial spike in XRP’s value on Gemini was potentially attributed to low liquidity during the hours following the token’s relisting. The sudden price increase could have been triggered by a sizeable market order, which found limited available offers at that time, causing the order to be executed at an unusually high price point.
Crypto analyst Ali suggests that the market depth drop could have played a role in this scenario. Notably, the market depth for XRP on Gemini was observed to be so shallow that a relatively small order of $37,000 could prompt a 2% price movement.
Kaiko, shedding further light on the situation, tweeted that XRP’s 1% market depth experienced a temporary decline on Gemini due to market makers pulling back in response to the rapid price spike to $50. However, this setback has since been rectified, bringing reassurance to traders. The cryptocurrency data provider’s update assures traders that XRP’s market depth has rebounded and achieved a more stable state.
In a parallel positive development, Gemini has introduced the “XRP faucet,” an initiative involving the daily distribution of 4,000 XRP starting at 3 p.m. EST and continuing until August 18, 11:59 p.m. ET. This endeavor is expected to further engage the XRP community and expand its participation on the Gemini platform.
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