Following a rather calm week for altcoins, XRP, Dogecoin, and Shiba Inu gained renewed attention due to a significant update from Gemini. The US-based cryptocurrency platform announced that it is now officially permitting these three tokens, alongside Bitcoin Cash and Solana, as cross-collateral assets for its derivatives marketplace.
Significant Advancement For XRP, Dogecoin, And Shiba Inu
Gemini’s choice enables XRP, DOGE, and SHIB holders to leverage their tokens as collateral for GUSD-settled perpetual contracts, a capability that was previously restricted to BTC, ETH, USDT, and the Gemini stablecoin GUSD. All five newly accepted tokens come with different collateral “haircuts,” meaning only a fraction of their worth is considered for margin requirements. XRP and Solana each have a 15% haircut, whereas Dogecoin and Shiba Inu encounter a more pronounced 30% haircut due to their heightened volatility profiles.
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Gemini has simplified the process for users to trade derivatives using a wider array of holdings by integrating these newer assets. This action not only enhances the utility of these cryptocurrencies but also introduces new use cases for traders wishing to utilize their assets in perpetual contracts without converting to stablecoins.
This is particularly a significant move for XRP, which has been striving to bolster its institutional appeal and global payments applicability. The action is also advantageous for meme tokens Dogecoin and Shiba Inu, which are witnessing growing demand outside the meme coin sector. This expansion further illustrates a broader trend in cryptocurrency derivatives. Numerous crypto exchanges, especially those based in the US, are increasingly welcoming altcoins. It also marks a remarkable shift from the condition of the crypto market a few years ago.
For nearly three years, XRP was either delisted or unavailable on the majority of US-based trading platforms due to the legal dispute between Ripple and the US Securities and Exchange Commission. It wasn’t until July 2023, following Judge Analisa Torres’s partial decision that XRP was not classified as a security when sold on exchanges, that the token started to make its return to major US platforms, including Gemini.
Price Movement Heading Downward
At the moment of writing, XRP is trading at approximately $3.13, a 1.4% drop from the prior day but still remaining within its recent range of $3.06 to $3.18. Dogecoin is trading at $0.2226, showing minimal intraday fluctuations after failing to maintain its momentum above $0.23. The leading meme coin has decreased by 3.2% and 14.2% over the past 24 hours and seven days, respectively.
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Shiba Inu, for its part, is trading at $0.000013, likewise experiencing a decline of about 4% in the last 24 hours and over 13% in the last week.
Nonetheless, numerous analysts continue to hold a positive long-term outlook for these cryptocurrencies. Predictive models indicate that Dogecoin could potentially ascend to $1 in the ongoing bull cycle, whereas SHIB is anticipated to reach at least $0.000045. XRP’s forecast is even more ambitious among many cryptocurrency analysts, with price targets ranging from $9 to $10 if adoption momentum persists and pending US Spot ETF applications eventually gain approval from the SEC.
Featured image from iStock, chart from Tradingview.com