XRP Sees Surge in Spot Exchange and Derivatives Volume
XRP, one of the top-performing cryptocurrencies, has experienced a price increase of over 4.5% in the past 24 hours. However, the most significant surge is seen in its spot exchange and derivatives volume, both of which have more than doubled since October 4.
Data from CoinMarketCap and CoinGlass shows impressive increases in volume indexes for XRP. The spot exchange volume has increased by 104%, while derivatives operations volume has surged by over 185% in the past 24 hours.
Despite high trading volume on the spot market, XRP is now witnessing a massive spike in demand for derivative contracts. This is especially significant as Bitcoin and Ethereum have experienced a decline of around 30% in derivatives volume during the same period.
XRP Derivatives Gain Traction
While XRP’s derivatives volume has increased by 185%, the two leading cryptocurrencies by market cap have seen losses of 35% and 29% in the crypto derivatives trend index provided by CoinGlass.
This suggests that traders are shifting their derivatives operations towards Ripple’s token instead of other competitors.
The total flow of XRP derivatives currently stands at $3.16 billion, which is twice as high as the spot exchange volume. Interestingly, this amount is also three times less than ETH’s 24-hour derivatives volume, indicating a divergence between the two cryptocurrencies’ market cap.
There is a potential correlation between the increase in Open Interest volume and another price surge for XRP, as indicated by a chart from CoinGlass. However, historical correlation does not guarantee that prices will continue to follow this metric. Derivatives data also suggests that there are more traders opening short positions rather than long positions at the moment.
Hot Take: XRP Sees Significant Surge in Derivatives Volume
XRP has experienced a remarkable increase in both spot exchange and derivatives volume. While its spot exchange volume has risen by 104%, its derivatives operations volume has surged by over 185% in the past 24 hours. This surge in demand for derivative contracts is significant, especially considering the decline in derivatives volume for Bitcoin and Ethereum. Traders are increasingly turning to XRP for their derivatives operations, leading to a total flow of $3.16 billion in XRP derivatives. This surge in derivatives volume may indicate a potential price surge for XRP in the future, although traders are currently opening more short positions than long positions.
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