XRP's Market Cap Momentarily Zoomed to Trillions of Dollars on Gemini

Low liquidity after the token’s relisting likely caused a temporary pricing glitch on the exchange.

AccessTimeIconAug 11, 2023 at 7:05 a.m. UTC
Updated Aug 11, 2023 at 2:45 p.m. UTC

XRP temporarily surged to $50 on crypto exchange Gemini, which rocketed the token's market capitalization to trillions of dollars if only for a few minutes.

Prices shot up to those levels for a few minutes at 20:30 UTC on Thursday before immediately reverting to parity with the spot markets on other exchanges.

The bump, which took a few seconds to correct, was likely a result of low liquidity in the hours following a token relisting on Gemini, during which a buyer may have placed an outsized market order — which was filled at an outrageously high price.

As such, XRP traded at levels higher than the broader market for at least a few hours, price chat data shows.

XRP traded at above-market prices on Gemini. (Gemini)
XRP traded at above-market prices on Gemini. (Gemini)

Some market observers opined a seller placed a spoof order at $50 per XRP, which was unintendedly filled by a buyer who may have “fat-fingered” the trade.

Market depth data shows XRP liquidity on Gemini remains relatively low, with only a $37,000 order required to move prices by 2% on the exchange. In contrast, the same price move on Binance would require at least $2.2 million.

The token was relisted on Gemini after July’s court order in favor of Ripple Labs, with a federal judge ruling that the “offer and sale of XRP on digital asset exchanges did not amount to offers and sales of investment contracts.” In 2020, the U.S. Securities and Exchange Commission sued Ripple Labs on allegations that Ripple sold XRP to U.S. customers without adequate registration.

At the time of writing, XRP was trading at 63 cents.

Edited by Parikshit Mishra.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.