Good news for XRP traders is shared by cryptocurrency market data source Kaiko. The top cryptocurrency asset’s market depth on the Gemini cryptocurrency exchange has been restored. Market depth refers to a market’s capacity to tolerate moderately sizable market orders without significantly influencing the asset’s price.
As previously mentioned, Gemini just declared the listing of XRP, joining the expanding list of exchanges that have done so.
After the listing, XRP temporarily reached $50 on the Gemini cryptocurrency exchange, skyrocketing the token’s market value—if only for a moment.
Prices quickly restored to parity with the spot markets on other exchanges after briefly hitting those levels.
The temporary price surge was likely caused by low liquidity in the hours following XRP’s relisting; at this period, a buyer may have placed an excessive market order that was completed at an absurdly high price.
Crypto expert Ali believes that the scenario could have been brought on by a decline in market depth. The expert pointed out that the market depth for XRP on Gemini at the time was so thin that only an order worth $37,000 would be needed to change prices by 2%.
In a subsequent tweet, Kaiko adds further details about the incident, noting that market makers pulled back following the sudden jump to $50, which caused XRP’s Gemini market depth of 1% to briefly decline. Although this could appear worrying, there is no longer a need for fear since it has been restored.
Kaiko said that the XRP market depth has recovered and is now very stable, which is excellent news for traders.
Gemini announced a significant XRP giveaway nicknamed the “XRP faucet,” in which it will be giving out 4,000 XRP every day at 3:00 p.m. EST until Aug. 18, 11:59 p.m. ET. This is an encouraging development.
