Cryptocurrency exchange Gemini witnessed a price glitch that sent shockwaves through the market on August 10, as the value of Ripple’s XRP briefly surged above $50. The glitch occurred shortly after Gemini relisted the digital asset, following the recent court ruling that deemed XRP’s programmatic sale as non-security.
Gemini users and market observers were left astounded as XRP’s price experienced an unprecedented spike, reaching a peak of $50, far exceeding its usual trading range. The sudden surge was independently confirmed by numerous cryptocurrency traders on the X social media platform, formerly known as Twitter, sparking discussions and speculations within the crypto community.
Upon further investigation, it became apparent that the price glitch was intimately tied to the exchange’s inadequate market liquidity, coupled with some erroneous fat-finger orders. According to reports, Gemini’s order book was characterized as “razor-thin,” a description fitting for a marketplace with limited depth. In one peculiar instance, a seller listed over 1,300 XRP units for sale at an astonishing $50 each, which exacerbated the already unstable situation.
Market data from Coingecko further supported this narrative of scarce liquidity, revealing that XRP’s market depth of +2 was a mere shadow of its usual self, amounting to less than $50,000 at the time of reporting. The total trading volume of XRP on the exchange over the past 24 hours painted a bleak picture, registering a modest $484,712. Such figures underscored the fragility of the market conditions during the glitch.
Despite the momentary frenzy, XRP’s price on Gemini eventually realigned with its counterparts on other crypto platforms. As of press time, the token was trading at a more familiar $0.63, a stark contrast to the astronomical figures witnessed during the glitch.
The incident follows Gemini’s decision to relist XRP, as several U.S.-based exchanges followed suit following the court ruling that exempted the token from the securities classification. While this move was anticipated to bring new life to XRP’s trading, the price glitch has illuminated the underlying challenges that exchanges might encounter when faced with abrupt and drastic fluctuations.
Read more:
- Ripple’s Resurgence: Re-Engaging The U.S. Market Post Court Ruling On XRP
- Ripple Labs Releases 1 Billion XRP Amidst Ongoing SEC Legal Battle