Why did the Ripple (XRP) price drop today (October 11)?

The price of XRP suffered a massive crash, liquidating more than $700 million. But why?

The broader cryptocurrency market has seen the worst deleveraging events in history over the past 24 hours. Ripple’s XRP did not remain unscathed. In fact, it was one of the altcoins that painted huge red fuses, falling to a low of $1.2 on the Binance perpetual contracts charts.

That’s a 60% pullback, which unsurprisingly forced many traders to be liquidated. So much so that nearly $1 billion in leveraged positions have been wiped out in the last 24 hours.

Why is the XRP price falling?

While the reasons remain unclear and speculative at best, the fact is that the overall cryptocurrency market may have suffered its worst crash in years.

As CryptoPotato reported, Nearly $20 billion in leveraged positions have been liquidated in recent hours as the price of Bitcoin fell from more than $122,000 to $105,000 on some crypto exchanges.

Of course, and as is almost always the case, altcoins had it the worst. Believe it or not, XRP wasn’t even among the worst performers. ATOM, for example, saw almost 99% of its spot value disappear before bouncing back.

XRP also recovered and is currently trading around $2.4 on Binance.

There is no specific reason isolated to XRP related to this market crash and its decline is likely attributed to the broader wipeout in the sector.

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However, the event highlights the dangers of leverage and once again shows how much more volatile altcoins are and how much thinner their trading order books are compared to Bitcoin’s.