XRPUSDT 2020 Overview

On the first day of each month 1,000,000,000 XRP is released from Escrow and sold to corporate clients of ripple. This is essentially the rate of supply and underlying supply schedule. Once all XRP has been distributed from Escrow, all XRP will be in circulation. This is in my view an alternative method to mining as XRP can not be mined.

One of the world's leading exchanges, Binance, added XRP to its Futures trading platform. The coin is available in the form of XRP/USDT perpetual contract with leverage up to 75x. It means that XRP is now available for margin trading. Binance explained more about their new product with this comment:

"The Perpetual Contract is an attempt to take advantage of a Futures Contract - specifically, the non-delivery of the actual commodity - while mimicking the behavior of the Spot market in order to reduce the price gap between the Futures Price and the Mark Price. This is a marked improvement compared to the traditional Futures Contract, which can have prolonged or even permanent differences versus the Spot Price."

The contracts are traded against the stablecoin Tether (USDT), and users can choose between 1x and 75x leverage. Futures trading is extremely risky, with the potential for big profits and devastating losses. It allows users to enter positions that are larger than their account balance, and perpetual contracts have no expiration date. It is believed that this event heavily contributed to XRP leading a crypto market rally on Monday. According to the market data compiler CoinMarketCap, the price rose by approximately 10-12% depending on where you measure it from. According to a new report from the exchange, BTC futures , which launched in September, have consistently posted higher volume than spot trading for the leading cryptocurrency.

Binance says its Bitcoin futures contracts recorded a median daily volume of $923.1 million in December, while the spot market displayed $285.6 million daily volume .
Source: Binance Research

Although this chart shows a rise in the average volume level and greater dynamic range would suggest that XRP is getting traded more recently. However according to the market data compiler CoinMarketCap, the volume remains fairly consistent and flat. However zooming in to the total market volume you can clearly see that Binance has cause a spike up in volume from 1,000,000,000 USD/24 Hour to 2,300,000,000 USD/24 Hour just after launching their XRP futures . Will this be the beginning of a trend up for the trading volume? We shall see. Probably yes.

With upper spikes of around 0.21USD - 0.22USD it would seem that this would be a daily if not weekly target to break through. The sooner it comes the more contagious buying becomes.

For the first third of 2019 XRP appeared stable at 0.30USD. This gave a lot of people hope the bottom was in, however traders were rekt as the price went bearish for pretty much the entire second half of the year after a 2 month long fake out to 0.50USD.

Mid May will see the Bitcoin mining reward reduced by 50% causing a huge fall in the rate of supply. If people still want to be buying this at the rate they are, this may naturally start a gradual yet extended BTC bull market until the bulls run out of steam. If the BTC halving creates more bull euphoria in the crypto space. XRP being in third place will be likely to increase in value. Last BTC halving help push XRP into second place, knocking Ethereum off the number 2 spot.



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