XRP Market Depth Hits Six-Year Low as Binance Optimizes Trading Pairs and Hyperliquid Integrates USDT

XRP's market depth on Binance has plummeted to its lowest level since 2020, sparking concerns about volatility in the cryptocurrency's price. According to analytics platform CryptoQuant, XRP's 30-day liquidity index has fallen to 0.043, its lowest reading since January 2020.

The decline is attributed to large holders moving volumes to over-the-counter desks and regulated funds, isolating coins from the retail spot market. As a result, the market has become extremely sensitive to single large transactions, with medium-sized orders triggering impulsive price moves within a 4% to 5% range.

CryptoQuant experts warn that periods of extremely low liquidity have traditionally preceded the formation of powerful price trends. If trading activity suddenly spikes, the lack of supply on exchanges may trigger a strong price move.