Although XRP fell by over 14% during the first two weeks of October 2026, driven by massive long liquidations amid sticky inflation in the United States, the cryptocurrency asset has added more than $4 billion to its market capitalization on October 21.
As of press time on Wednesday, XRP’s market cap had appreciated by approximately $4.1 billion over the past 24 hours. As a result, the token’s market cap ranged at about $85.7 billion during the early New York trading session.
The crypto asset saw its market cap climb by over 5% over the last 24 hours. After the token rebounded over 2% from a major support level around $1.29 on Tuesday, it extended gains during the European trading session, signaling renewed demand.
Why is XRP price up on October 21?
The XRP price rebound today followed the broader crypto rebound of the top 10 digital assets by market cap, led by Zcash (ZEC), Hyperliquid (HYPE), and Ethereum (ETH).
At the time of reporting, XRP had experienced a heated up derivatives market, whereby its 24-hour trading volume had rocketed 21.27% to $13.79 billion.
Meanwhile, its Open Interest (OI), the total unsettled futures in the derivatives market, has rallied nearly 6% to $6.94 billion at the time of writing.
As the token recorded a renewed cash inflows to its derivatives market, amid bullish sentiment, heavy liquidation of short trades triggered a short squeeze, forcing short sellers to exit their positions and driving a sharp bull rally.
Token’s price performance on Wednesday
Over the past 24 hours, XRP’s trading volume surged 34.65% to $1.94 billion, according to data Finbold retrieved from CoinMarketCap.
Consequently, XRP’s market cap increased by $4.1 billion on Wednesday catalyzed by bullish sentiment for the broader crypto industry amid its renewed demand in derivatives and spot market.
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