This article was first published on Insights – Ripple
Ripple publishes the quarterly XRP Markets Report to voluntarily provide transparency and regular updates on the company’s views on the state of the XRP market, including quarterly programmatic and institutional sales updates, relevant XRP-related announcements such as Xpring and RippleNet partnerships and commentary on previous quarter market developments. As an XRP holder, Ripple believes proactive communication is part of being a responsible stakeholder. Moreover, Ripple urges others in the industry to follow its lead to build trust, foster open communication and raise the bar industry-wide.
Market Snapshot: Crypto as a Safe Haven Asset Class
Since the advent of bitcoin, digital assets are often referred to as safe haven assets, or assets that market participants can turn to during turmoil in the financial markets, due to their presumed lack of correlation to traditional markets. Born out of the 2008 financial crisis, digital assets put the safe haven label to the test. That was all about to change on March 12, 2020, or what some describe as “Black Thursday.”
In the days preceding Black Thursday, digital assets began the week holding firmly along with gold and trading as a safe haven asset, while equity markets were seeing the beginning of COVID panic. However, as the S&P dipped below 3,000 on Black Thursday, unprecedented volatility spread through digital asset markets. Bitcoin (BTC) saw its largest one day move ever, losing over 50% of its market value in a matter of hours—a decline accelerated by billions of USD worth of liquidations on leveraged derivative venues and lending platforms.
As digital asset holders rushed to transfer digital assets to either meet margin calls, sell out of their positions, or take advantage of price dislocations, the BTC and Ethereum (ETH) networks became overwhelmed and suffered performance issues. According to Coin Metrics, “median ...
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Insights – Ripple