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MGI, ODL, Bitso and a theory about the price

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Thank you for your insights, @JASCoder.

 

Yesterday was one of the highest-volume Mondays thus far, I think, and today is looking strong as well. Let's see whether this will continue for the rest of the week.

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7 hours ago, Xrpiet said:

Thank you for your insights, @JASCoder.

 

Yesterday was one of the highest-volume Mondays thus far, I think, and today is looking strong as well. Let's see whether this will continue for the rest of the week.

Happy to share interests friend :) 

Yes indeed, the Bitso XRP sells volume now runs at a mean of about 1.7m an hour, wasn't long ago it was between 500-800 k

This could be a high-volume week. Just a few hours ago we saw 5.4m XRP sold in one hour at Bitso.

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Posted (edited)

Something's happening on the ODL corridors guys, the liquidity indices are exploding! Have new companies started operating on the existing corridors?

Edited by Frisia

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Posted (edited)

The last couple of days XRP had a fairly constant price (low volatility), and quite a lot of volume, which means that the expected volume corresponding to zero volatility (i.e. the 'liquidity index') is high.

 

EDIT

In the attached plot, you can see the fit that calculates the 'liquidity index' for the MXN volume for the last 10 dates. Every such fit is based on data of 27 days prior to that date and the date itself. The y-intercept of the blue line for every facet is the liquidity index of that date. The two high-volume, high-volatility points on the top right which had big impact on the fitted line have disappeared (they are now more than 28 days ago), so the fitted line is flatter, and the y-intercept (liquidity index) is larger.

liquidity_fit_mxn.png.c55e94fc7b24663e336d01f5ac4553b9.png

Edited by Xrpiet

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1 hour ago, Ryyy20 said:

What has caught my eye is that nowadays, the volume seems to be dwarfing that of the ‘17-‘18 bull run:

9F98BEA7-06A0-4B63-932A-3EBCDF7C93CD.thumb.png.f231ef87bd1197089b3a675e6bbf522c.png
 

I mean how much longer is this going to stay under 0.20

But this isn’t ODL, what your showing is “trading volume” I quote this as it’s mostly fake.. 

So we don’t know what is what..? 

We live in hope...

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3 hours ago, mariusthegreat said:

But this isn’t ODL, what your showing is “trading volume” I quote this as it’s mostly fake.. 

So we don’t know what is what..? 

We live in hope...

To support ODL there has to be some "market making" to create volume... one may call it "trading" but that's always what it is even when you or me buy or sell it's a sort of trading.... But one thing is for sure: to have a smooth running ODL, the order books have to be filled deep enough and volume must be high enough to maintain acceptable small spreads...

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Just now, kanaas said:

To support ODL there has to be some "market making" to create volume... one may call it "trading" but that's always what it is even when you or me buy or sell it's a sort of trading.... But one thing is for sure: to have a smooth running ODL, the order books have to be filled deep enough and volume must be high enough to maintain acceptable small spreads...

What I may learn from those weird volume swinging could be that MM isn't (yet) very profitable without some effective ODL running. For every real ODL tx going through there's probably a small profit for the MM on the spread.... JMHO...

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48 minutes ago, kanaas said:

But one thing is for sure: to have a smooth running ODL, the order books have to be filled deep enough and volume must be high enough to maintain acceptable small spreads..

I'm not sure how ODL works but the above does not have to be necessary true. The sender can place an order for an agreed price. That order hits the orderbooks, maybe crossing some orders that are already present in the orderbook and then maybe a part of the order is not taken yet. Then the ODL MM comes (on demand?) in and takes the rest of the order.

So the orderbooks do not have to be filled in advance, there can be 'hidden' liquidity.

Actually ODL market makers acting as market taker (so waiting for the order to have hit the book and then take it) will guarantee that the order will succeed for at least the agreed upon price. Sort of OTC where both sender and receiver each have their own counter and the transaction runs over public orderbooks. (but I'm wildly guessing now) 

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20 minutes ago, jn_r said:

I'm not sure how ODL works but the above does not have to be necessary true. The sender can place an order for an agreed price. That order hits the orderbooks, maybe crossing some orders that are already present in the orderbook and then maybe a part of the order is not taken yet. Then the ODL MM comes (on demand?) in and takes the rest of the order.

So the orderbooks do not have to be filled in advance, there can be 'hidden' liquidity.

Actually ODL market makers acting as market taker (so waiting for the order to have hit the book and then take it) will guarantee that the order will succeed for at least the agreed upon price. Sort of OTC where both sender and receiver each have their own counter and the transaction runs over public orderbooks. (but I'm wildly guessing now) 

Guess we're all guessing ;-)

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Posted (edited)
On 4/24/2020 at 8:46 PM, JASCoder said:

Even tho Molten has bowed out, I'm guessing a few "ODL Watchers" remain here with me, and remain interested...

With the BS/Bitso trade activities I've been monitoring all these months, I'm noting they seem to have settled into a consistent behavior...

 

I am, was sent here by FLintstone on Discord, not sure if he is called that here though. Have read part of what went before and just also read FlashFX CEO interview here. Interesting developments, seen a lot of new corridors seemed to be tested and also several new exchanges on Mouradski 's tracker. I love that thing  :-)  I saw BitTrex finally do at least 1 transaction, but have seen BitStamp_EUR, BitKub, BitHumb, BitFinex as well.

This was good to see:

 

0013_Corridors.jpg

Edited by Frans

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