In a noteworthy turn of events, leading crypto market data provider Kaiko has unveiled a positive development for XRP traders using the Gemini exchange. In a recent tweet, Kaiko highlighted that XRP’s market depth on the US-based exchange has substantially recovered, offering traders improved stability and confidence in their transactions.
Kaiko’s report underscores that XRP’s market depth within a 1% price range on Gemini has rebounded, now steadily around 150,000 XRP. This resurgence in market depth signifies a significant recovery after a recent setback.
Market depth plays a pivotal role in assessing a market’s capacity to handle substantial orders without causing dramatic fluctuations in an asset’s price. The restoration of XRP’s market depth is a positive sign for traders seeking a smoother trading experience on Gemini.
Gemini’s XRP Roller Coaster
Notable fluctuations have marked XRP’s journey on Gemini. The asset’s market depth plunged on August 10, following a remarkable price spike that pushed XRP to $50 on the exchange. This disparity prompted discussions about market dynamics and trading conditions on the platform.
The XRP price spike on the exchange, surging by a staggering 7,836%, caught the attention of analysts and the crypto community’s attention. The peculiar nature of this price movement, significantly deviating from other spot markets, was attributed to the exchange’s low market depth during that period.
Gemini’s reaction to these dynamics was multi-faceted. The exchange reinstated XRP trading after Ripple’s legal victories against the SEC, celebrating the relisting with a satirical promotional video. However, the coin’s price spike led some to question the platform’s market depth and its influence on price movements.
Notable analysts, including Ali Martinez, speculated that the unexpected surge was attributed to Gemini’s limited market depth for XRP. Martinez pointed out that even a $37,000 order could result in a 2% price movement for the coin due to the low market depth. Additionally, it was revealed that Gemini adjusted its XRP charts to depict a surge only to $1.6 during the listing.
To attract more engagement from the Ripple community, Gemini introduced the “XRP faucet” campaign, promising to give away 4,000 XRP coins daily for six days. This initiative reflects Gemini’s efforts to draw in users while fostering community involvement.
As of the latest data, XRP is trading at $0.6, registering a 4.2% decline in the past 24 hours. CoinGecko data ranks XRP as the fifth-largest crypto asset globally, boasting a market capitalization of $31.65 billion. These figures show Ripple’s current position within the broader cryptocurrency landscape.
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