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.
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
- PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
- PlatoESG. Automotive / EVs, Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
- PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
- ChartPrime. Elevate your Trading Game with ChartPrime. Access Here.
- BlockOffsets. Modernizing Environmental Offset Ownership. Access Here.
- Source: https://cryptopotato.com/heres-how-much-money-can-move-ripple-xrp-price-by-2-on-major-exchanges/
- :is
- :where
- $1 million
- $3
- $UP
- 000
- 1
- 2%
- 9
- a
- About
- above
- Accumulate
- across
- AI
- Altcoins
- amount
- an
- and
- ARE
- At
- background
- below
- binance
- Binance Futures
- Bithumb
- boasts
- book
- border
- both
- bring
- by
- CAN
- certain
- code
- coinbase
- color
- concept
- considerable
- consume
- content
- cryptocurrency
- Cryptocurrency Exchange
- Cryptocurrency Exchanges
- cryptocurrency trading
- Current
- daily
- decrease
- deposits
- depth
- difference
- direction
- dispose
- down
- end
- enjoy
- Enter
- especially
- essence
- Ether (ETH)
- exchange
- Exchanges
- Exclusive
- execute
- fact
- Fees
- fewer
- First
- For
- foreign
- Free
- Futures
- gauge
- Goes
- hand
- Have
- healthy
- here
- How
- HTTPS
- if
- in
- Increase
- indicative
- interesting
- internal
- into
- IT
- ITS
- jpg
- just
- Korean
- larger
- leading
- like
- Liquid
- Look
- major
- Margin
- Market
- massive
- million
- million worth
- money
- more
- most
- move
- much
- Need
- needed
- negative
- None
- number
- of
- off
- offer
- on
- ONE
- only
- order
- orders
- Other
- platform
- plato
- Plato Data Intelligence
- PlatoData
- positive
- pressure
- price
- Reading
- ready
- receive
- regard
- register
- Ripple
- Ripple (XRP)
- s
- Said
- same
- second-largest
- sell
- Sellers
- Selling
- Share
- show
- Shows
- side
- significant
- solid
- special
- Sponsored
- Take
- that
- The
- There.
- therefore
- this
- those
- time
- to
- traded
- Trading
- understand
- volume
- want
- Way..
- WHO
- willing
- with
- world’s
- worth
- writing
- xrp
- you
- Your
- zephyrnet