Coinbase has expanded its offering by introducing support for XRP (Ripple) and LTC (Litecoin) perpetual futures contracts.
As everyone knows, XRP and LTC are two of the most prominent crypto assets on the market, and their addition to Coinbase’s futures platform has generated considerable interest among traders.
Summary
Added support for Litecoin (LTC) and Ripple (XRP): Coinbase’s strategic move
At present, Litecoin is trading at $85.21, making it the 12th largest virtual currency by market capitalization. Similarly, XRP is trading at $0.69 with a market capitalization of $36 billion.
Both tokens have seen slight gains over Bitcoin and other virtual currencies since their listing on Coinbase.
It is essential to note that these perpetual contracts are available exclusively to institutional traders. This decision comes amid recent regulatory developments, with the US Securities and Exchange Commission (SEC) urging Coinbase to delist all virtual currencies except Bitcoin.
Despite the regulatory pressure, Coinbase has moved forward with offering these new futures contracts, responding to institutional demand for exposure to XRP and LTC.
The two crypto assets in the spotlight
Both XRP and LTC have been in the spotlight for various reasons. XRP, an affiliate of Ripple Labs Inc, recently won a major legal victory against the SEC. Judge Torres ruled that the sale of XRP tokens on public exchanges does not violate federal securities law. This ruling gave a boost to XRP’s reputation and market sentiment.
On the other hand, the third halving event of Litecoin occurred on 2 August, a development that has attracted attention in the cryptocurrency community.Â
This halving event reduces the reward of miner blocks from 12.5 to 6.25 LTC per transaction block, potentially altering the supply and demand dynamics of altcoin. As a result, LTC has seen an increase in holders, strengthening its position in the cryptocurrency payments landscape.
Futures trading on the Coinbase exchange
As for Coinbase’s futures trading platform, the exchange recorded about $2 billion in volumes in the previous month.
Although this is a considerable figure, it is worth noting that the momentum slowed as the month progressed. The volume of the two existing contracts, perpetual Bitcoin and Ether futures, declined gradually during July.
However, despite the decline in trading volume, Coinbase’s global expansion strategy proved successful, with the Bermuda-based futures exchange performing promisingly.
It is worth noting that the cryptocurrency futures market is still relatively new and liquidity may take time to fully mature.
As the market continues to grow and more users enter, liquidity is expected to increase, making the market more attractive to traders on existing exchanges.
Coinbase’s decision to expand its futures offering to include XRP and LTC indicates the exchange’s commitment to providing its users with a diverse range of investment options.
The introduction of these perpetual futures contracts could further increase the attractiveness of Coinbase’s platform for institutional traders who wish to diversify their cryptocurrency holdings.
Conclusions
To conclude, Coinbase’s recent addition of perpetual futures contracts on XRP and LTC represents a significant development for the exchange and the broader cryptocurrency market. The move reflects Coinbase’s determination to expand its services and meet the demands of institutional traders.
As the cryptocurrency market continues to evolve, exchanges like Coinbase play a crucial role in providing accessible and regulated avenues for investors to participate in the growing digital asset space.Â
The introduction of futures contracts on XRP and LTC on the Coinbase platform will likely draw more attention to these cryptocurrencies and could potentially lead to increased market adoption and interest in the long run.
