Liquidity for XRP on Binance has dropped to its lowest level since January 2020, according to new data shared by CryptoQuant.
The decline in liquidity suggests thinner order books and reduced trading depth on the exchange, potentially increasing volatility and price sensitivity during large buy or sell orders.
Historically, periods of declining liquidity in crypto markets have often preceded stronger price swings, as lower market depth can amplify both bullish and bearish momentum.
The development comes as XRP trading activity and broader altcoin market participation continue showing mixed signals amid uncertain macroeconomic conditions.