Twitter account, which tracks the XRP Liquidity Index values in four ODL corridors, revealed that the numbers fell below zero in three of them. The event caught the attention of the crypto community and the comment from the creator of the series clarified it. Details are in our news.
Twitter account “LiquidityB” reported that the XRP liquidity indices of the three crypto exchanges Bitso, Bitstamp and BTC Markets, which are Ripple’s ODL corridors, fell to -1.365.925, -6.598.803 and -3.487.819, respectively. Bitso and Bitstamp are major platforms that work with Ripple’s ODL product to conduct cross-border transactions using XRP as an intermediary currency. Bitso is located in Mexico and works with the XRP / MXN pair. Bitstamp, on the other hand, works with XRP / EUR in pairs and is located in Luxembourg.
The liquidity indices falling to a negative value is not the first time this year. The person who created the XRP liquidity indexes index is referred to as “tenitoshi” on the index page…
This striking situation is likely to be a result of the way the index value is calculated, and as it turns out, the creator of the content suggests to think of negative numbers as “close to zero”. Close to zero can happen when the market is not liquid or very volatile.
These indices began to drop below zero after March 13 this year, also known as Black Thursday, when Bitcoin lost about 50 percent in a 24-hour period and XRP fell to $ 0.13. However, current negative values for XRP liquidity may also mean that XRP holders are holding tightly to their coins after XRP reached $ 0.78257 on November 24.