In a time of big ups and downs in the world of cryptocurrency, XRP, which is a well-known cryptocurrency, saw its trading volume shoot up by a massive 80% in just 24 hours. This surge pushed the trading volume of XRP over $4 billion, which is a lot of money changing hands in a short time.

Derivatives and Spot Markets Boost XRP Trading

According to reports from CoinGlass, a big chunk of this trading activity, about $2.16 billion, came from derivatives trading alone. On top of that, the spot markets contributed another $1.9 billion. This increase in trading volume, especially in the spot markets, shows a 55.4% jump from the day before. Despite all this activity, the total value of all XRP tokens in the market, known as market capitalization, remained at around $32.5 billion. This means that although a lot of XRP was being traded, it was still a relatively normal amount compared to the total value of all XRP tokens out there.

Crypto Bloodbath: Massive Liquidations

However, this surge in XRP trading happened during a period of what can only be described as a “crypto bloodbath.” This term refers to a time when the cryptocurrency market sees a lot of selling and prices drop sharply. During this period, over $400 million worth of trading positions were forcefully closed. Shockingly, a huge 85.5% of these positions were long positions, which means people who were betting that prices would go up. In the XRP market specifically, an even higher percentage of liquidated positions—94%—were long positions, totaling $5.47 million.

XRP Prices Take a Hit

At the same time as all this trading frenzy, the price of XRP took a dive. This drop in price triggered stop losses and margin calls. Stop losses are automatic selling orders triggered when the price of an asset falls below a certain level, and margin calls are demands from brokers for investors to add more money to their accounts to cover potential losses. These forced selling actions led to even more trading volume as people rushed to get out of their positions.

Putting it in Perspective

While the surge in XRP trading volume is indeed significant, it’s important to understand it within the broader context of the cryptocurrency market. This market is known for its wild swings and big losses, so even though XRP saw a lot of action, it’s just a part of the bigger picture of crypto trading.