XRP and Other Altcoins Experience High Volatility

According to data from Kaiko, the realized volatility of the Ripple-linked XRP has exceeded 100% this March. The Solana (SOL) token has also faced extreme volatility this week.

Meanwhile, the Cardano (ADA) token hit a record high of 120% in realized volatility. This massive fluctuation has been attributed to developments regarding the highly discussed cryptocurrency reserve.

On March 2, XRP’s price soared 34% after being listed among tokens to be included in a reserve, but it then plummeted nearly 19%. Other tokens saw similar changes, as many welcomed the concept of a multi-token cryptocurrency reserve.

It was confirmed that these altcoins would form a separate “stockpile” distinct from a Bitcoin-only reserve. Confusion arose regarding how this stockpile would be constituted, as it was stated only forfeited tokens would be included.

Both ADA and XRP took additional losses after it was clarified that they were listed based on market cap rather than chosen by the government. On Monday, leading altcoins faced another significant correction alongside Bitcoin and tech stocks. XRP, for instance, dropped 14% since the initial reserve announcement and is now flat year-to-date after reaching a new all-time high of $3.40 in January.