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XRP, the seventh largest cryptocurrency by market capitalization, saw its trading volumes surge, climbing 58% in the last 24 hours. This spike coincides with a broader sell-off in the cryptocurrency market, which saw a staggering $377 million in liquidations.
Cryptocurrencies fell broadly on Friday, following a report that the United States was investigating stablecoin issuer Tether for violations of sanctions and anti-money laundering regulations.
Paolo Ardoino, CEO of Tether and CTO at Bitfinex, spoke to X shortly after the article, saying the WSJ is “regurgitating old noise.” According to Ardoino, there is no indication that Tether is under investigation.
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Meanwhile, over the past 24 hours, XRP trading volume increased by 58.62% to over $1.36 billion, or 2.66 billion XRP, according to data from CoinMarketCap. This increase in volume could be an indicator of market activity, as traders either look to capitalize on price movements or adjust their positions in response to the market sell-off.
At the time of writing, XRP was down 2.29% from the previous day to trade at $0.516 and down 7% for the week.
Crypto Market Faces $377 Million Liquidations
According to data from CoinGlass, crypto futures saw liquidations of over $377 million in the past 24 hours as the market fell, representing an increase of 182%.
Traders betting on higher prices lost over $308.76 million; those betting on Bitcoin (BTC) and Ethereum (ETH) lost $44.21 million and $45.64 million, respectively. The largest liquidation order was for Binance – a BTCUSDT transaction valued at $3.59 million.
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A liquidation occurs when an exchange terminates a trader’s leveraged position because the trader is unable to meet margin requirements. The silver lining to this situation is that a cascade of liquidations may portend a price reversal due to an overreaction in market sentiment.
In a recent tweet, Santiment shared this view, stating that “assuming markets maintain their disappointing trajectories through the weekend, expect sentiment to start reflecting much-needed FUD, which would in turn imply a rebound in the market to start next week.”
