Liquidity Rankings Show XRP Soaring, BNB, Solana & Cardano Experience Decline
In the ever-changing world of cryptocurrency, XRP has experienced its fair share of ups and downs. While the coin showed signs of growth between September and November, it was December’s 2.78% increase that sparked hope for a possible shift in the bearish market trend. As we approach the end of the year, many in the crypto community are eagerly anticipating a potential rally, closely monitoring influential market players and noting the decrease in activity from individual traders.
A recent report by Kaiko, a leading analytics platform, has shed new light on the value of cryptocurrencies. Instead of solely relying on market size as a metric, the report suggests considering other factors such as liquidity, trading volume, and market depth. This fresh perspective challenges the traditional way of assessing crypto value.
Kaiko’s Q3 liquidity ranking revealed an unexpected standout performer: XRP. While Bitcoin and Ethereum predictably topped the charts in terms of liquidity, XRP made a surprising leap to the 4th position, surpassing coins like BNB. This surge can be attributed to the recent regulatory clarity in the United States. Dogecoin, a popular meme coin, secured the 5th spot, while Litecoin, despite having a lower market cap, rounded out the top five.
However, not all coins fared well in the liquidity rankings. AVAX and TON experienced significant drops, failing to match their market cap standings. Other tokens like ATOM, UNI, SHIB, OKB, LEO, and CRO also saw a decline in liquidity rankings.
The report emphasizes that a token’s market value only tells part of the story. For example, Litecoin performed strongly in terms of liquidity, while TON struggled despite its high market value. The rankings took into account various factors such as trading volumes, market depth, and the number of exchanges supporting each token. This comprehensive approach aimed to capture both short-term trading dynamics and long-term investment trends. The report also highlighted the advantage of tokens with high liquidity, as they are less susceptible to manipulation.
Currently priced at $0.62, XRP has shown a slight gain and remains resilient against Bitcoin’s fluctuations. With a market cap ranking it sixth at $33.7 billion, XRP boasts a strong 24-hour trading volume of nearly $596.8 million. The question on everyone’s mind is whether XRP’s consistent performance will lead to further growth in the future. Only time will reveal the answer.
Tags: Ripple (XRP)