Ripple sold twice as much XRP this quarter, as demand grows for its ODL service

Despite the ongoing legal battle with the Securities Exchange Commission, Ripple reported a 97% increase in sales of XRP for Q1.

Ripple posted its Q1 markets report on May 6th and revealed that total sales net of purchases had gone from $76.27 million in Q4 2020, to $150.34 million in Q1 this year.

Ripple noted the surge in sales was led by the growing demand for RippleNet’s working capital service On-Demand Liquidity or ODL:

“The increase in XRP sales can be attributed to deeper engagement from key ODL customers. For well over a year, Ripple has not sold programmatically.”

The firm added: “Ripple continued to engage in sales to support ODL and key infrastructure partners as part of providing increased XRP liquidity to improve the ODL experience of certain customers, eliminating the need for pre-funding and enabling instant global payments.”

According to CryptoCompare, total sales by Ripple accounted for just 0.07% of global XRP volume.

According to Ripple, ODL enables RippleNet clients to source instant liquidity in XRP that can be converted into international currencies within three seconds, removing the need to hold pre-funded accounts for international payments.

The company also reported that over the quarter, three billion XRP had been released from its massive escrow holdings — however 2.7 billion XRP had been returned to new escrow contracts.

Some have attributed XRP’s recent resurgence in part to Ripple labs’ purchase of a 40% stake in cross-border payments firm Tranglo, which was acquired to expand its ODL service into Southeast Asia.

Sheraz Ahmed, the host of the Crypto Valley Association podcast and managing partner at Storm Partners, a crypto and blockchain solutions provider, told Cointelegraph on April 9th that:

“XRP’s upward momentum is fueled by Ripple’s newly announced 40% stake in Asia’s leading cross-border payment processor, Tranglo. The partnership will undoubtedly increase Ripple’s exposure to the Asian market.”

Additionally, wallets holding between 1 million to 10 million XRP grew by 6.3%, up from 1,125 in Q4 to 1,196 in Q1.

The SEC case alleging Ripple Labs of selling unregistered securities worth $1.3 billion, does not appear to be preventing big players from increasing their holdings. The report revealed that the number of XRP whales had increased 3.5% in Q1. The firm posted data via Santiment, which showed “whale wallets” holding 10 million XRP or more increased from 308 in Q4 2020, to 319 in Q1 2021.

According to data from CoinGecko, the price of XRP is up 648% in the past 12 months. John Wagster, an attorney at Frost Brown Todd spoke with Cointelegraph on April 18th and attributed XRP’s mammoth gains to the bullishness in crypto markets in general, rather than to the firm’s recent set of legal wins in its defense of the SEC case.

In the past 24 hours more than $14 billion XRP changed hands and currently sits at a price of $1.59, with a market cap of $73 billion.


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Ripple Releases 1 Billion XRP from Escrow

Ripple has once again released 1 billion XRP from its escrow account. The XRP tokens were unlocked in two separate transactions of 500 million each.

The release of XRP tokens from escrow at the beginning of each month follows a practice Ripple has been keeping up since 2017. Escrow releases for XRP are scheduled cryptographically and set for the beginning of the month. The reason for doing this goes with Ripple’s strategy of promoting its ecosystem, helping start-ups of interest, and retaining XRP use consistent.

The 1 billion XRP was released in two separate transactions of 500 million XRP each and signalled by Whale Alert. With one billion XRP newly released into the market, more liquidity can be found on the Ripple network, and investors will now have the opportunity of purchasing more XRP.

The XRP tokens being released into circulation comes at a time when Ripple co-founder Jed McCaleb has been actively selling his XRP funds. After leaving Ripple in 2014 to help in the creation of Stellar (XLM), McCaleb was awarded 8 billion XRP tokens.

McCaleb has been periodically selling XRP from his “tacostand” account amid the pressure caused by the Securities and Exchange Commission’s lawsuit against Ripple labs. According to data from XRPScan, the co-founder now has around 30.5 million tokens left.

Currently, XRP has fallen below the psychological barrier of $0.50 once again, and the cryptocurrency will likely face ongoing headwind until the SEC’s legal case condemning it as a security is resolved. Despite falling below $0.50 once again, XRP is up approximately 6% in the last 24 hours, trading at $0.44320.

Image source: Shutterstock


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Mati Greenspan Shocked by Ripple’s XRP Token’s Circulating Supply Up by 26% this Year

Mati Greenspan, the founder of analytics firm Quantum Economics expressed his disbelief that the circulating supply of Ripple’s XRP token has increased by 26% this year, which makes Ripple’s recent bull run to $0.70 seem less conceivable.

Mati Greenspan questions Ripple XRP circulating supply increase 

The data and explanation by Greenspan caused a stir in his thread, as the data indicates that Ripple’s XRP should have had greater difficulty surging to around $0.70 on most exchanges in recent weeks with so much of the XRP supply available to the public. 

Ripple’s XRP token has also seen a price surge of around 160% this year, with most of its price gains coming over the course of the last month—posting similar gains to Bitcoin. However, Quantum Economics founder Mati Greenspan appears shocked due to Ripple XRP’s circulation supply.

MEssari Ripple.jpg

Greenspan posted the above chart from Messari on Twitter, writing:

“WTF XRP? Is this accurate? What gives? Circulating supply of XRP is up 26% this year according to @MessariCrypto.”

The huge increase in XRP’s circulating supply this year led the Twitter-sphere to question how Ripple’s token was able to surge to $0.70 with such a huge amount of XRP available to the public in in circulation as well as raised some of the same old questions about Ripple’s operating model.

Ripple has faced criticism for the perceived lack of decentralization in its XRP network, with some Twitter followers arguing that Ripple can release the XRP tokens at will.

These comments and Greenspan’s own explanation of the XRP supply drew the ire of one seemingly knowledgeable Ripple supporter called ‘Cricket’ who argued:

“NOT even close to how it works! The supply is fixed with the exception being 1 billion tokens per month that unlocks from escrow. Ripple has put 90% to 100% of those back into a 5-year escrow. The amount of XRP hasn’t even increased more than 4 billion in the last 3 years.”

According to Ripple’s own explanation, the company has locked 55 billion XRP (55% of the total possible supply) into a series of escrows. These escrows are on the ledger itself and the ledger mechanics, enforced by consensus, control the release of the XRP.

Per Ripple’s website:

“The escrow consists of independent on ledger escrows that release a total of one billion XRP each month over the next 55 months. This provides an upper limit on the amount of new XRP that can be brought into circulation. The amount of XRP actually released into circulation will likely be much less than this. Any additional XRP leftover each month will be placed into a new escrow to release in the first month in which no escrow currently releases.”

Reasons For XRP Bull Run and Drop

As reported by Blockchain.News, the Spark (FLR) Airdrop Program, which greatly benefits XRP holders could be a reason for the massive circulating supply, as FLR tokens could be received freely on a 1:1 ratio with XRP, officially launched on December 12.

The Spark (FLR) Airdrop Program, which greatly benefits XRP holders could be a reason for the massive circulating supply, as FLR tokens could be received freely on a 1:1 ratio with XRP, officially launched on December 12.

Due to this factor, on-chain data indicates that the XRP bull run leading up to the snapshot was caused by crypto investors increasing its stake to receive more spark tokens.

Although market traders were expecting Ripple’s XRP token price to soar to unfathomable heights following Ripple-funded Flare Networks’ airdrop, the cryptocurrency did the opposite – XRP’s price crashed instead.

The price plunge of XRP was attributed to one major explanation – following the airdrop, many traders dumped their XRP funds, sending the token price down by around 8% to $0.50.

As Bitcoin booms into new realms of price discovery past $23,000 pulling the rest of the crypto market with it, XRP price has also found momentum rising 8.5% this week, with 6.5% of the token price increasing over the last 24 hours to the current price of $0.60 where it is consolidating.

The XRP token price increase may be further buoyed by recent news from Ripple’s CTO David Schwartz, who shared encouraging statistics of the new XRP Ledger software build.

After merging the performance proposals of various software engineers to optimize the XRP ledger—Schwartz reports that the optimization of the XRP Ledger (XRPL) reduces memory consumption by about 50% and improves the synchronization speed.

While this is positive news for XRP holders, the XRPL upgrade must be audited and approved prior to implementation. 

Image source: Shutterstock


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