XRP Price Prediction as $1.5 Billion Trading Volume Comes In – Are Whales Buying?
Disclosure: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. By using this website, you agree to our terms and conditions. We may utilise affiliate links within our content, and receive commission.
The sixth-largest crypto is hanging at the very edge of a cliff as uncertainties in the market mount, especially from the United States. Despite the total market cap sliding below the $1 trillion mark to stand at $963 billion on Saturday, XRP price is relatively unchanged in 24 hours but trading at $0.3691.
Crypto Market Overview – Can XRP Price Bounce Back?
It has been another difficult week in the crypto market owing to the worsening economic conditions and regulatory pressure from US agencies. The collapse of Silvergate bank last week hinted at the ghosts of the messy implosion of FTX exchange coming back to haunt the industry.
In other emerging news, Circle’s USDC stablecoin is nosediving and deviating from its dollar peg amid panic over the collapse of another banking entity SVB Financial Group. SVB is a subsidiary of the California-based Silicon Valley Bank.
The second largest stablecoin is reportedly suffering from contagion following the second US bank to collapse in March 2023. USDC holds at $0.9052 according to the live price data by CoinGecko, a figure significantly lower than its expected value of $1.
Approximately $3.3 billion in USDC’s cash reserves could be in the custody of SVB, raising concerns among investors about the ability of Circle to fully back the $37 billion stablecoin. Stablecoins have become a fundamental part of the crypto industry and are gradually finding a footing in the traditional banking sector.
The possibility of a weekend sell-off cannot be taken off the table, with investors likely to panic due to the contagion of another stablecoin crash. However, data shared by Wu Blockchain on Twitter suggests “the actual risk exposure may only be a small amount of funds.”