Ripple’s XRP Token Plummets in Value, Bybit Crash Exacerbates Loss
Ripple’s XRP token has experienced a significant decline, losing over 15% of its value in the past 24 hours. This drop was further intensified by a massive crash in the XRP/USDT perpetual contract on Bybit, resulting in a 45% loss during early trading hours.
User “Defisquared” Provides Possible Explanation for XRP/USDT Value Drop
A well-known Bybit user, known as “@Defisquared” on social media, has put forth a potential reason for the sudden decrease in the XRP/USDT pair’s value on the exchange. They suggest that the sharp price disparity between XRP/USDT and XRP/USD perpetual contracts occurred due to extensive XRP liquidations, which caused algorithmic market makers to deplete their supply of spot XRP necessary for the coin-margin contract.
Main Points:
- XRP token experiences a significant decline, losing over 15% of its value in the past 24 hours.
- XRP/USDT perpetual contract on Bybit crashes, resulting in a 45% loss during early trading hours.
- User “@Defisquared” speculates that extensive XRP liquidations caused algorithmic market makers to exhaust their supply of spot XRP required for the coin-margin contract.
Hot Take:
The recent plunge in XRP’s value, coupled with the crash in the XRP/USDT perpetual contract on Bybit, has sent shockwaves through the crypto market. The explanation provided by user “@Defisquared” offers some insight into the possible causes behind these events. It highlights the vulnerability of algorithmic market makers and the influence of liquidations on the overall market. The future of XRP remains uncertain, and investors should closely monitor developments in order to make informed decisions.
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