Market depth is an interesting concept to understand, especially for those who are into cryptocurrency trading.
In essence, it’s a way to gauge how liquid a certain cryptocurrency is and if its order book is healthy and can consume a certain number of orders.
That said, Ripple’s XRP is one of the most traded altcoins on the market, and it boasts a massive daily volume across most of the major cryptocurrency exchanges. Therefore, it’s interesting to take a look at how much money is needed to move its price.
Starting with Binance – the world’s leading cryptocurrency exchange – to move the price of XRP by 2% in a positive direction, you need to execute a market order of $1.9 million. On the other hand, if you want to bring it down by the same amount, you have to sell $3.3 million worth of XRP at the time of this writing.
The second-largest exchange in this regard is Coinbase, where you need $650K to increase XRP’s price by 2% and just shy of $1 million to decrease it.
The fact that there’s a larger depth on the negative side shows that there are more orders placed to accumulate XRP at a difference of 2% below the current price. On the other hand – there are fewer sellers willing to dispose of XRP at a difference of 2% above the current price.
On a foreign market like the KRW, the most liquid exchange with the thickest market depth is Bithumb – the Korean platform. There, you only need $390,000 to increase XRP’s price by 2% and about $500K to decrease it. This goes to show that on both exchanges, the sell-side market depth is more considerable and it is indicative that there are more orders ready to absorb significant selling pressure.
The post Here’s How Much Money Can Move Ripple (XRP) Price by 2% on Major Exchanges appeared first on CryptoPotato.
