XRP Price Jumps 10% As Binance Futures Launches 75x Leverage On Perpetual Contracts
Binance crypto exchange announced on Monday, Jan. 6th the introduction of their third perpetual contract, XRP/USDT that will hold leverage up to 75X as the digital asset grew over 10% in the past 24 hours.
According to an official press release on Binance blog, one of the world’s largest exchanges will be introducing perpetual futures of XRP against Tether (USDT) starting January 6, 2020. The pair follows BTC/USDT and ETH/USDT on the platform opening a world of possibilities to both retail and institutional investors.
Perpetual futures contracts are defined as contractual agreements to buy/sell a particular asset at a predetermined price but differ a bit from the normal futures as there is no expiration date for these contracts. This provides investors with a long term bet on the asset, in our case XRP/USDT.
The contract will have an initial margin base rate of 1.3% with the maintenance margin set at 0.65%. The liquidation fee is set at 0.5% the value of the contract.
— Binance (@binance) January 6, 2020
The bearish momentum on XRP prior to the news breaking caused a frenzy of shorts to be opened with some analysts describing the new derivative on Binance “a perfect opportunity to short”. However, XRP has proved the critics wrong climbing over 10% in the past 24 hours as the market turned bullish.
XRP/USDT shoots up 10% in the past 24 hours
As at time of writing, XRP is the top performing cryptocurrency across the top 10 cryptocurrencies according to Coinmarketcap. The XRP Army must be in a celebratory mood given the extended bearish momentum on the coin since the market pump back in October last year. XRP’s 9.50% growth in the past day set the asset’s return at the top of the return standings amongst the top 20 largest cryptos by market cap.
Currently trading at $0.21060 USD, XRP strengthened its hold on the third position with the total market capitalization standing at $9.2 billion USD. The spike in XRP’s price come at a time the crypto market bulls are taking center stage as the top coins followed BTC’s slight growth by 1.9% in the past day; Stellar (XLM), Bitcoin SV (BSV) and Bitcoin Cash (BCH) grew by 7.7%, 5.64% and 5.73% respectively.
The total crypto cap currently stands at $204 billion USD.