Ripple’s price has jumped 12% on the news that the cryptocurrency is soon to be available on Coinbase Pro. XRP deposits must reach “sufficient” levels before trading officially begins, but the US crypto exchange is allowing deposits as of 10 am PT this morning. The minimum period between opening deposits and enabling trading is 12 hours.
Coinbase Will Support Ripple Trading
According to the Coinbase blog, XRP/fiat pairs will be available in several jurisdictions initially. These include non-New York US states, Canada, Singapore, Australia, the UK, and several other European countries. Coinbase’s decision to add XRP seems to have spurred trading. They describe XRP as follows:
XRP is the cryptocurrency used by the XRP ledger, which supports international currency exchange and remittances. The ledger is powered by a network of peer-to-peer servers. All accounts on this network can send or receive XRP to/from each other, while XRP can be used to send underlying fiat currencies between two parties. In this way, XRP can function as a bridge currency in transactions involving different currencies such as US dollars, Japanese yen, Euros, Francs, and others in use on the XRP network.
There have been various debates over the use of the term “Ripple.” For this reporter, the terms XRP and Ripple have always been interchangeable.
The Coinbase Effect
Ripple was pushing for 35 cents on other exchanges. Presumably, at least some Coinbase Pro users are purchasing Ripple to deposit on Coinbase Pro.
The company has in recent months gone on a spree of listing altcoins. For years, however, it was an exchange purely for Bitcoin, and later Ethereum. Some have wondered if there is a “Coinbase” effect on the price of altcoins, citing the case of the Basic Attention Token. If such an effect factually exists, it’s evident in the major increase on Ripple. Notably, the token was suffering a dip just prior to the news.
Four percent of its daily volume happened in the XRP/Tether market on Binance, for a total of nearly $50 million. Binance’s XRP/BTC pair had another $38 million in volume over the 24-hour period, giving the exchange a comfortable 7% of the day’s volume.
In the coming days, we can expect a significant portion of volume to be happening at Coinbase. Coinbase boasts one of the largest user-bases for a regulated exchange. It is commonly seen as the easiest way to get involved in cryptocurrency.
The listing will take place in four stages. The first is ongoing at press time, with users able to make deposits of XRP. After that, for a “minimum of one minute,” only post type orders can be placed. Next, orders will begin to be executed by Coinbase. This will go on for at least ten minutes, and then full market trading will be enabled – meaning customers can make all the same types of trades they can with other cryptos on Coinbase Pro.
Featured Image from Shutterstock. Price Charts from TradingView.
Last modified: March 4, 2021 2:54 PM