XRP has seen a double digit drop within minutes. So what was the reason behind this decline?
XRP, the seventh largest cryptocurrency in terms of market capitalization, recently dropped 12 percent on the Binance exchange in 50 minutes to $ 0.472, erasing previous earnings.
Following this sudden collapse, the cryptocurrency has managed to make an impressive recovery, currently trading at $ 0.52.
$ 1.7 billion worth of crypto money liquidated
The cryptocurrency market has seen a large amount of liquidation on futures exchanges after the largest cryptocurrency, Bitcoin, dropped to $ 54,000.
According to Bybt data, over $ 1.7 billion of cryptocurrencies have been liquidated in the last 24 hours, and $ 1.2 billion was deleted in just 12 hours.
XRP ranks fourth by total liquidation with $ 85.7 million.
Binance Coin endured a brutal correction and dropped to $ 249 on February 20, after rising to $ 348 the previous day.
Overall, XRP and Binance Coin were the two worst-performing cryptocurrencies in the top ten. Litecoin and Bitcoin Cash follow it.
McCaleb has billions of tokens
Meanwhile, Ripple co-founder and Stellar creator Jed McCaleb continues to unload millions of XRP cryptocurrencies.
During this week, McCaleb has consistently sold 38 million tokens daily.
According to Leonidas Hadjiloizou, McCaleb still has 2.49 billion XRP. However, their sales are expected to decline next week due to the cryptocurrency’s falling trading volume.