The liquidity index for XRP paired with the Mexican Peso (XRP/MXN) has hit a new record on Mexico’s largest crypto exchange Bitso.
Liquidity in the market refers to how easily a digital asset can be converted into cash or swapped for other cryptocurrencies without affecting the stability of its price. High liquidity indicates a stable market.
According to the Liquidity Index Bot, the liquidity index of XRP/MXN on Bitso has been rising steadily over the last four days. From 32,962,643 on May 27th, it rose to 35,168,346 on the 28th, and to 36,023,811 on the 29th before peaking at 36,795,339 on May 30th, surpassing the previous record of 36,023,811.
— Liquidity Index Bot (@LiquidityB) May 30, 2020
Bitso uses Ripple’s On-Demand Liquidity (ODL) service to convert US dollars into XRP by transferring the digital asset to banking partners, where it is then converted to Mexican pesos.
The crypto exchange now processes 2.5% of all remittances from the US to Mexico. According to the firm’s head of finance Bárbara González Briseño, Bitso has seen an increase in transfer volumes since partnering with Ripple to facilitate faster and cheaper cross-border payments.