Why did Ripple lose $ 31 billion of capitalization?
On January 8, happy XRP holders, updating CoinMarketCap, saw that Ripple’s price dropped from $ 3.18 to $ 2.61, and capitalization decreased by $ 23 billion at once. This was due to the fact that the management of the site CoinMarketCap decided to abandon accounting of price data of South Korean exchanges in the process of price formation on their website. Bithumb, Korbit and Coinone were among the exchanges for which they will no longer pay attention.
This decision was made due to the fact that on some local currency crypto-exchange exchanges, many coins are traded much higher than the average on the market. This is due to the fact that periodically on a particular coin there is an increased demand in a particular country, and sellers do not want to part with them at the price of the market, as their orders with inflated prices are still quickly closed. Ripple, for example, traded there and still trades a whole dollar higher than on major world exchanges.
It is curious that after a strong “collapse” of the price, she continued to slowly go downward. And today XRP is already trading at $ 2.38, and capitalization is $ 92 billion, which is $ 7.5 billion more. less than immediately after the decision of CoinMarketCap to ignore the prices of South Korean exchanges. This was due to the fact that some of the holders of this coin panicked and decided to get rid of it.
Now Ripple loses Ethereum $ 26 billion, and it is quite possible that in the foreseeable future they will again be reversed.