Cryptocurrencies and digital assets can only thrive when there is enough liquidity. Getting more exchanges to list particular currencies is always a good solution in this regard. Binance is quickly becoming a very popular exchange for altcoin traders. It seems the company recently decided to add XRP to its platform. An interesting decision, although no immediate impact on the XRP price is expected. There is far too much volatility in cryptocurrency for altcoins to make a legitimate impact right now.
Ripple fans will be pleased with this listing of XRP on Binance. This particular platform can generate a lot of liquidity and trading volume. Most people know the platform and the company has built up a solid reputation in the process. It is evident the team wants to solidify its position in the market as well. Adding popular digital assets to the exchange will certainly help in this regard.
Two new Trading Markets for Binance
The addition of XRP comes at a curious time. With the Bitcoin price setting new records every week, altcoins are suffering. Opening an XRP/BTC market wouldn’t make much sense as there will be very little volume. That being said, there are always reasons to enable such a trading market. It is worth mentioning XRP also gets an ETH market. It is one of the few platforms where XRP and Ether can be exchanged intermittently.
Although the news was made official earlier, there are still some caveats. Deposits and withdrawals through the app are not possible at the time of writing. Binance users will also need to enter a “tag” to ensure their deposits show up. Failing to do so may result in the funds being lost. Plus, withdrawals of XRP require this “tag” as well. Ripple’s native asset isn’t like your average cryptocurrency, that much is evident. It is good to see Binance explain all of this to their customers in a professional manner, though.
So far, these new markets haven’t generated much volume yet. The XRP/BTC market represents around 93 Bitcoin worth of volume. The Ether market has seen over 52.5 ETH being traded. Neither of these numbers is very impressive, although things will pick up over time. It is evident this listing may help RIpple’s asset overcome some of the current price volatility. It will be an uphill battle for all currencies, that much is certain.
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