Price impact refers to the effect that a trade or series of trades has on the market price of an asset. When a trader buys or sells a significant quantity of an asset, it can cause the price to rise or fall due to the change in supply and demand dynamics. Price impact is particularly relevant in markets with lower liquidity, where large trades can lead to more significant price fluctuations. It is an important consideration for traders, as it affects the execution price they receive and the overall cost of their trading strategies. Understanding price impact is crucial for effective market participation, portfolio management, and assessing the overall market conditions.
Recent activity among XRP investors has sparked significant interest in the cryptocurrency market. A group of large-scale investors, commonly referred to as "whales," has accumulated a staggering 1 billion XRP…