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XRP, the seventh-largest cryptocurrency by market capitalization, has seen an increase in trading volume, surging 58% in the past 24 hours. This surge coincides with a broader decline in the crypto market, which saw a staggering $377 million in liquidations.
Cryptocurrencies fell sharply on Friday following reports that the US is investigating stablecoin issuer Tether for sanctions and violations of anti-money laundering regulations.
Paolo Ardoino, CEO of Tether and CTO of Bitfinex, criticized X shortly after the article, saying the Journal was “regurgitating old noise.” Ardoino said there is no indication Tether is being investigated.
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Meanwhile, XRP trading volume increased by 58.62% in the past 24 hours to over $1.36 billion (2.66 billion XRP), according to CoinMarketCap data. This increase in volume can be an indicator of market activity, as traders try to take advantage of price movements or adjust their positions in response to market declines.
At the time of writing, XRP was trading at $0.516, down 2.29% from the previous day, and down 7% for the week.
Crypto market faces $377 million liquidation
According to data from CoinGlass, over $377 million in liquidations occurred in crypto tracking futures in the past 24 hours as the market declined, representing an increase of 182%.
Traders who bet on the high lost more than $308.76 million. Those who bet on Bitcoin (BTC) and Ethereum (ETH) lost $44.21 million and $45.64 million, respectively. The single largest liquidation order was on Binance, with a BTCUSDT trade worth $3.59 million.
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Liquidation occurs when an exchange terminates a trader’s leveraged position due to the trader’s inability to meet margin requirements. The silver lining to this is that a series of liquidations could be the harbinger of a price reversal due to market sentiment overreacting.
Santiment shared this view in a recent tweet, saying, “Assuming the market maintains its dominant trajectory through the weekend, we expect sentiment to begin to reflect the long-awaited FUD, which will continue in the market starting next week. “It would signal a backlash.”
