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Developments in Q3 Weighed on Asset Prices and Liquidity: Ripple

Published 01/11/2023, 19:35
Updated 01/11/2023, 19:45
Developments in Q3 Weighed on Asset Prices and Liquidity: Ripple
XRP/USD
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COIN
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Coin Edition -

  • The crypto market drew fewer cues from broader macro assets.
  • Significant market developments that weighed on asset prices and liquidity.
  • Multiple instances of protocol hacks, rug pulls, and scams setback the crypto industry in Q3.

The crypto market drew fewer cues from broader macro assets, instead placing greater emphasis on industry-specific news and capital flows in the third quarter of 2023, according to Ripple’s latest report. The blockchain company noted that the publication aims to provide transparency and regular updates on the company’s views on key industry developments and crypto market movements, focusing on relevant XRPL and XRP-related news.

Ripple noted in the report that there were significant market developments that weighed on asset prices and liquidity. The blockchain company identified multiple instances of protocol hacks, rug pulls, and scams as some of the setbacks experienced by the crypto industry in the last quarter.

According to Ripple, the crypto industry lost nearly $686 million in Q3. A hot wallet security breach on HTX in September resulted in an $8 million worth of ETH loss, while Mixin Network, a cross-chain protocol, lost $200 million in crypto due to an exploit.

Furthermore, Ripple reported that the crypto market’s trading volume dropped significantly in the last quarter. BTC volumes reached a three-year low of $1-2B a day, while XRP volumes neared a four-year low of $300-400M daily. These drops resulted from the already-mentioned security setbacks, coupled with ongoing volatility and uncertainty in traditional markets.

Notably, one of Ripple’s most significant events of the third quarter of the year was the US court decision in July, which ruled that XRP is not a security. Following the ruling, several US exchanges relisted XRP, including Coinbase (NASDAQ:COIN) and Kraken.

Among other details, the report also noted that Challenger exchanges that prioritized regulated token status gained market share. For instance, Bullish has shown material growth since its recent listing of XRP, and the XRP options markets have emerged with new listings on Bit.com and Deribit.

The post Developments in Q3 Weighed on Asset Prices and Liquidity: Ripple appeared first on Coin Edition.

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