Popular Ripple’s Coin XRP’s Fake Liquidity on Crypto Exchanges?
Ripple’s coin XRP is the second largest cryptocurrency coin in the market only after the Bitcoin [BTC] according to market cap. The XRP which is a digital asset is trying to achieve new financial organizations and institutions across the world to execute cross border transactions. This digital asset in future will be the top serious competitor for Bitcoin in the market.
XRP coin has significantly seen an increase in the trading volume at various exchanges around the world. As per the CoinMarketCap report the XRP coin traded at a volume of about $400 million, placing it at the 5th position by trading volume in the last 24 hours. However, coinmarketbook.cc confirmed that some portion of the coin liquidity is not true and is false.
The Coinmarketbook launched a new metrics .cc that will show the capacity of real liquidity of some of the popular coins in the market. The metrics have a Buy Support option that defines the sum of buy orders from the highest bid price at 10 percent distance and is computed by adding all the buy orders which are near to the bid price at max 10 percent distance and later the amount is exchanged into USD.
By using this technique, the Coinmarketbook will escape the operation of the market by market makers and big whales. The big whales and other market makers specify big orders to support the coin price which hides the real interest in the coin which is basically below the buying price level.
The buy support indicator displays that there are around $138 million users who are waiting to purchase bitcoin, around $26 million buying orders are for Ethereum, and there is only $13 million buying order for XRP token. To know more about XRP click here.
The website will give you the details information about real liquidity that has taken place on leading exchanges. The website allows the market to get an idea of the coin and the trading volume of the coin.
Few XRP token holders are misguided and falsely believe that XRP token is an essential element for operation across the company’s cross border payments solution. But this is not true because most of the banks are seen in support of a Ripple Product mostly known as xCurrent. The xCurrent product of Ripple does not make use of XRP tokens at all.
Now the question is about the price of the one XRP and how is it decided? As of now the price of XRP is decided by the speculators on crypto exchanges. In the long run, the speculators cannot decide on the value of XRP. The price of one XRP can be valued from people’s speculation, similar to the case like bitcoin. Nevertheless, the Banks are no more motivated by these beliefs and ideas.