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XRP has collapsed along with the rest of the cryptocurrency market, but this analyst believes the asset may be the one to find a quick recovery.
XRP was the most traded altcoin on Binance this month
In the new CryptoQuant Quicktake mailcommunity analyst Maartunn spoke about how altcoins currently compare to each other based on monthly Binance futures trading volumes.
“Trading volume” here refers to an indicator that tracks the total amount of a particular asset involved in trading on a central exchange. In the context of the current topic, the platform is Binance.
Below is the chart shared by the analyst that shows the trend in the monthly value of this metric for several of the top altcoins in the sector.
From the chart, it appears that for most months of this year, Solana (SOL) dominated trading volume on the exchange. There has been a turnaround in the market over the past couple of months, with SOL losing its number one position.
Last month, Dogecoin (DOGE) managed to overtake the asset to become the number one altcoin in this metric, while XRP surpassed both this month.
To date, XRP has seen a trading volume of $116.6 billion on the exchange. This value is also certain to rise, as December is still a third of the way through.
Although Binance does not make up the entire sector, the exchange is still the largest in terms of volume, so the trend there could represent the broader market. “It is important to keep track of the most traded coins on Binance, as they should be your main focus when trading altcoins,” Martin points out.
Over the past couple of days, the entire cryptocurrency sector has witnessed a collapse. Based on Binance’s monthly trading volume, “it looks like XRP could recover quickly,” the analyst says.
In some other news, the market decline over the past 24 hours meant that the derivatives side of the cryptocurrency sector recorded a massive amount of liquidations, according to data from Queen Glass.
Of the $1.40 billion in liquidations that occurred within this window, XRP-related contracts appear to have contributed approximately $42 million, as the heat map below shows.
Interestingly, Dogecoin and Solana seem to have seen a larger inflow than XRP. This may be due to the fact that both assets have also seen a deeper price decline.
Ripple price
During the recent crash, XRP briefly fell below the $2.0 level, but it appears that the coin has managed to recover back above the mark at the moment as its price is trading around $2.1.
Featured image from Dall-E, CoinGlass.com, CryptoQuant.com, and chart from TradingView.com
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