2023 has been a momentous year for the cryptocurrency universe. Bitcoin and several other digital currencies have experienced slow but steady growth fueled by the expectation that a bull run is about to begin.
With an impressive increase, the price of bitcoin has practically doubled since the beginning of the year. This phenomenon sparked a wave of optimistic predictions about the cryptocurrency’s future, closely followed by Ethereum and XRP, which have also posted notable gains.
However, a peculiar event this weekend rocked the market. XRP, digital currency developed by Ripple, had a temporary surge and reached the value of $50 on the Gemini platform.
$XRP hit up $50 @Twinbut now they have updated their maps to make it appear #XRP hit $1.60. 😅
Still, the market depth is on this #crypto exchange is very low. Only a $37,000 order is needed to move #Ripple prices by 2%. pic.twitter.com/k5u2GV5PnH
— Ali (@ali_charts) August 11, 2023
XRP rises 8000% and ‘surpasses’ bitcoin
The staggering increase, which equates to a jump of about 8,000%, gave XRP a temporary market cap of more than $2.6 trillion and even surpassed bitcoin.
Many wondered about the reasons behind this unexpected event. Some speculation suggests that an XRP seller mistakenly placed an order to sell for $50 per unit, with that order being accepted by a buyer.
The social media debate was fiery with many asking: “Was that really a mistake?”
Wow. Current price of $XRP on @Twin. Is this a malfunction? pic.twitter.com/Nbzro1ahlW
— Yassin Mobarak 🪝 (@Dizer_YM) August 11, 2023
The rise, which took several seconds to correct, was likely due to the coin’s low liquidity. According to the trading expert, liquidity was so low that just an order of $37,000 was enough to boost XRP prices by 2%.
The details of the event are even more intriguing. Information from Coingecko and Coindesk indicates that on Gemini, a variation of just $37,000 in the XRP supply can affect the price by up to 2%, while on Binance this fluctuation would be $2.2 million.
A retrospective helps to understand the scenario. XRP was removed from many platforms after the US SEC (Securities and Exchange Commission) sued Ripple in 2020. However, after a legal reversal in July, many of these platforms quickly recovered the currency.
Unfortunately for XRP, the shadow of the SEC lawsuit in 2020 seems to have prevented the coin from achieving the same notoriety as bitcoin and ethereum in the 2021 boom.
In the midst of all this turmoil, one thing is certain: the cryptocurrency market remains a fascinating area, full of surprises and twists, that attracts the watchful eyes of investors and enthusiasts around the world.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
