• XRP’s market depth on the crypto exchange Gemini has rebounded after it briefly surged to $50.
• Last week, the 1% XRP market depth on the exchange dropped from 45k XRP to nearly zero.
• The liquidity has now stabilized at 150k XRP.
XRP’s Market Depth Rebounding
Ripple’s (XRP) 1% market depth on crypto exchange Gemini has recovered following its surge to $50 last week. Despite being down by 7% over the past week and 20% in losses for the month, analysis suggests that the crypto asset’s market depth is once again rising.
Gemini Re-listing Prompted Surge
The surge in XRP price was prompted by Gemini re-listing the token due to low trading activity. As a result of this, market makers scaled back their participation and XRP’s 1% market depth declined from 45,000 tokens to nearly zero.
Low Liquidity Caused Price Shift
Crypto analyst Ali shared similar observations last week and added that the XRP market depth on Gemini was so minimal that a mere $37,000 order could cause a 2% price shift.
Liquidity Now Stabilized at 150k Tokens
Fortunately, according to Kaiko’s report, the liquidity has now stabilized at approximately 150,000 tokens. This occurred following an SEC lawsuit against Ripple Labs Inc., which caused significant losses for investors and traders alike across all digital assets since December 2020 .
Conclusion
Despite suffering severe bearish pressure alongside other top cryptocurrencies over recent weeks, it appears as though Ripple’s (XRP) 1% market depth on crypto exchange Gemini is gradually recovering following its brief surge last week.