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Binance has launched a perpetual XRP contract and ripple surged by 10%

Binance was on a roll in 2019, and it doesn’t appear to be stopping this year with new features on its platforms. The company announced that it will add XRP/USDT as a new perpetual contract trading pair. At the same time, the price of the third-largest cryptocurrency surged by over 10% in the last 24 hours. The company recently made a partnership with the popular derivatives exchange FTX.

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Operators recently reviewed the trend of the native token of the Ripple network, XRP, and found that it could reach very low levels in the coming weeks. According to Binance’s contract specifications, the liquidation fee for XRP/USDT will be 0.5%, and the minimum granularity is 0.1 contract units.

This fact, coupled with the apparent inability of positive news involving Ripple to positively affect the XRP has concerned investors. However, after the news that Binance will offer perpetual XRP contracts, the future looks bright.

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New developments for XRP

On January 6, Binance announced the launch of the XRP perpetual contract, with a 75x leverage. The Exchange already offers futures contract options for Bitcoin, Bitcoin Cash, and Ethereum.

Bitcoin, Bitcoin Cash, and Ethereum also match Tether, a stable coin matched to the dollar value issued by the company of the same name. The Binance futures trading platform was launched in September 2019 and in four months it has already made several options available to its users.

In comments on the Twitter post, users said that this would “destroy the XRP” and “destroy its value”. In fact, what happened was just the opposite.

Mass announcement appreciation

Since December 17, 2019, the XRP has been unable to resume its position in the $0.20 zone, always closing in. However, after the announcement and according to the time of writing, Ripple’s native token appreciated by 9.89%, to $0.214771.

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In the one-hour graph, the appreciation became clear a few minutes after the announcement. The announcement breaks the trend that XRP has been following and prevents cryptocurrency from testing the low support points predicted by the graphic indicators. It remains to be seen if Ripple’s native token will be able to maintain the appreciation longer by fitting it for recovery.

While XRP doesn’t exactly operate like other cryptocurrencies this trend is interesting. It demonstrates that while Bitcoin is certainly the most successful asset class in the cryptocurrency world Ripple, and other high-quality altcoins, may be able to survive the looming crypto crash. 

Crypto traders have been increasingly consolidating their assets into Bitcoin and a number of previously successful projects have begun to flounder under a tightening market and renewed scrutiny. 2020 is expected to bring renewed scrutiny to the cryptocurrency market, especially as institutional investors and big corporate players have made tentative steps to embrace cryptocurrency technology. 

We should fully expect to see a major contraction in the altcoin segment of the crypto market over the course of the next year. The major exceptions are either coins like Ethereum with a very strong backing or coins that are already heavily linked in the corporate world, like XRP. The value of Ripple doesn’t have any particular bearing on its viability and so long as the currency can be utilized by corporate clients the project is likely to continue to grow and thrive, even if XRP speculators continue to experience woes.

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(Featured image by QuinceMedia via Pixabay)

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Daphne Freeman has worked in the crowdfunding and impact investing industry for the past few years, gaining experience in marketing, and connecting businesses and entrepreneurs in need with the right investors. As a seasoned grant writer as well as financial market journalist, she is passionate about making a social impact in the world. A free spirit, Daphne also enjoys writing and exploring topics of interest, currently CBD, health and beauty, and social media influencers.