Ripple (XRP) funding rate at BitMex, the Arthur Hayes-led cryptocurrency derivatives trading platform, is up over 10X just two days after launch.
The high funding rate is when XRP prices are treading above an important resistance, now support, level, and almost retesting 30 cents, a psychological level.
BitMex launches a new Ripple Product
BitMex has emerged as the leading derivatives trading platform and draws the highest trading volumes. In early January, the number of Bitcoin Futures contracts open interest soared past $1 billion marks, rising more than 30% to near $1.5 billion at the time of press according to data from Skew, an analytics platform.
Meanwhile, XRP, the third most valuable coin, maintains a steady uptrend, adding 16% in the last trading week, paring losses against the greenback and BTC. Some analysts pin the uptick in trading volumes and soaring prices to a new perpetual swap for XRPUSD that was launched by the platform on Feb 5.
“We at BitMEX are proud to announce that trading of a new perpetual swap on the XRP token (XRPUSD) will begin at 0400 UTC on 5 February 2020.”
We at BitMEX are proud to announce that trading of a new perpetual swap on the XRP token (XRPUSD) will begin at 0400 UTC on 5 February 2020.
— BitMEX (@BitMEXdotcom) February 4, 2020
The new product is paired against the greenback and leverage is up-to 50X. However, margin will be posted in BTC and traders can long or short the product with BTC acting as collateral.
With the launch, Arthur joked on the real name of XRP, saying it doesn’t matter what the name of the underlying asset is as long as it is worth more than zero.
“Is it called Ripple, XRP, or dogshit? Who knows, who cares? It’s worth more than zero so it’s time to trade the USD pair on BitMEX. Boo-Yaka-sha!”
The drastic rise in funding rate means the demand for XRP is high and being in positive territory, longs—buyers, are paying shorts—sellers. Funding is paid each after 8 hours in the platform. Funding periods, nonetheless, vary across exchanges.
Time to HODL XRP
At the time of press, XRP is firm on its bullish track. With impressive gains over the last few weeks, enthusiasts now call for holding as Ripple Inc. will eventually disrupt finance:
“If you are willing to hold Ripple (XRP) for the medium to long term, you might be in a good position to benefit from its continued disruption of the global payments industry.”
if you are willing to hold Ripple (XRP) for the medium to long term, you might be in a good position to benefit from its continued disruption of the global payments industry.
— 👑 XRP fan🤴-XRP & VeChain & CSC (@Murraywolf2) February 6, 2020
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Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through his writing insights and coin price chart analysis. Follow him at @dalmas_ngetich