XRP scarcity index falls to three-month low
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- XRP (CRYPTO:XRP) traded near US$1.06 as Binance supply conditions loosened and the XRP Binance Scarcity Index fell to its lowest level in more than three months.
- The scarcity index declined to about 0.34 from levels near 0.80 earlier this year, indicating greater XRP availability on Binance.
- More than US$13.5 million in XRP derivatives positions were liquidated over 24 hours, with long traders accounting for over 96% of losses.
XRP (CRYPTO:XRP) traded at approximately US$1.06 after falling 3.85% over 24 hours as exchange data pointed to increasing supply availability on Binance.
CryptoQuant reported that the XRP Binance Scarcity Index declined to roughly 0.34, its lowest reading in more than three months, indicating a relative increase in the amount of XRP available for trading on the exchange.
“The index has fallen to approximately 0.34, its lowest level in more than three months, reflecting a relative increase in the available supply of XRP on the platform compared to previous periods,” said a CryptoQuant analyst.
The scarcity index measures the relationship between XRP held on Binance and trading demand, with the latest reading marking a decline from levels near 0.80 recorded during April and May when exchange supply conditions were tighter.
The analysis suggested that increasing liquidity could limit upward price momentum unless demand improves, and during the same 24-hour period XRP derivatives traders recorded US$13.53 million in liquidations according to CoinGlass data.
XRP is the native digital asset of the XRP Ledger and is widely used for payments, settlement and liquidity-related applications within the blockchain ecosystem.
CoinGlass data showed long positions accounted for approximately US$13.01 million of total liquidations, while Binance recorded the largest share at US$7.59 million, highlighting the impact of the recent price decline on bullish traders.
At the time of reporting, XRP price was $1.07.
