XRP took third place in the liquidity rankings, beating strong competitors such as Solana (SOL), Binance Coin (BNB), and Dogecoin (DOGE).
XRP Security #3
Kaiko, a leading cryptocurrency market intelligence platform, recently released a report on cryptocurrency market liquidity. With this latest update, XRP has firmly established itself as the third most liquid asset behind Bitcoin (BTC) and Ethereum (ETH).
Meanwhile, the report was prepared based on the performance of major indicators such as liquidity depth of 0.1%, liquidity depth of 1%, exchange point, spread point, and volume point. However, Bitcoin maintained its dominance last quarter, scoring a perfect score of 50.
Ethereum followed suit, securing 49 points across various parameters. In particular, XRP achieved a total of 48, establishing itself as one of the top three digital assets.
Solana surpassed Litecoin (LTC) to take 5th place. Additionally, Chainlink (LINK), Polygon (MATIC), and Avalanche (AVAX) entered the top 10. AVAX had the biggest surge, rising 14 places.
Liquidity vs. Market Capitalization
In its detailed report, Kaiko highlighted that Bitcoin (BTC) and Ethereum (ETH) maintain similar rankings in both liquidity and market capitalization rankings. However, XRP stood out in the liquidity category by securing 3rd place in the market capitalization ranking, which was 5th.
Solana, on the other hand, faces a different scenario as its liquidity ranking (5th) lags its market capitalization ranking (4th).
Solana trading volume surges
Looking at trading volume, Solana has performed very well, surging from $20 billion in the third quarter of 2023 to $116 billion in the fourth quarter of 2023. Solana was able to surpass XRP in trading volume as XRP’s trading volume decreased from $70 billion to $68 in the third quarter of 2023. $1 billion in the fourth quarter of 2023.
As the cryptocurrency landscape continues to evolve, XRP’s story in Q4 2023 serves as a testament to the unpredictable nature of the market.