The post Ripple News: XRP Market Depth Hits $12 Million Despite Regulatory Challenges appeared first on Coinpedia Fintech News
Ripple’s native cryptocurrency XRP is demonstrating resilience in liquidity, despite facing a turbulent market environment and regulatory uncertainty. According to the latest data from Kaiko, the token’s market depth witnessed an impressive 50% surge, reaching an average of $12 million in early September 2023.
This development comes after a significant legal victory for Ripple in its case against the U.S. Securities and Exchange Commission (SEC). XRP experienced an immediate bump in both trade volume and price following the ruling, spiking to a yearly high of $0.9380 and a 24-hour trade volume of $10.3 billion on July 13.
Global Exchanges Reflect XRP’s Strength
Binance and Bitstamp, among the world’s leading cryptocurrency exchanges, have recorded relatively higher market depths for XRP. Per CoinMarketCap data, Binance and Bitstamp have $2.5 million and $1 million in +2% depth, respectively. Meanwhile, the Korean crypto Exchange Upbit holds the most public XRP liquidity
XRP seems to be on a recovery path, as it currently trades above the $0.50 mark, up by 7.59% over the past week. Its stable liquidity might serve as a backbone for a sustainable price recovery in the weeks to come.
DFS excludes XRP from its Greenlist
Recently, the Department of Financial Services (DFS) unexpectedly scaled down its “green list” of approved digital currencies, excluding Ripple (XRP) and Dogecoin (DOGE) from the list. However, Bitcoin, Ethereum, and the newly minted PayPal Dollar managed to hold their positions on the roster. Notably absent from both the old and new lists is the USDC stablecoin, a popular digital asset pegged to the U.S. dollar.
Why Liquidity and Market Depth Matter?
Liquidity refers to how easily an asset can be bought or sold in the market without causing a drastic price change. Market depth is a critical measure of liquidity and includes all buy and sell orders of an asset on a specific trading platform or exchange.
Increased market depth means higher liquidity, which is crucial for the health of any cryptocurrency market. It minimizes the risks associated with large trades that could otherwise disrupt the market and makes it harder for a single entity to manipulate prices.
It needs to be noted that the XRP token’s resilience in holding its market depth above $10 million serves as a positive indicator for its long-term prospects, irrespective of short-term price fluctuations.