XRP owners breathed a collective sigh of relief after Ripple continued to pause sales of its native token. This now represents a total of six months in which the company has not benefited from “XRP dumping”.
The topic gained importance for the first time towards the end of 2019. At that time, XRP investors claimed that “XRP dumping” (or “programmatic sales”) caused some supply surges that led to price cuts. That, according to the community, was the main reason for the poor price development of the XRP share price during the entire last year.
However, while Ripple denied these claims, the company bowed to community pressure and suspended its “programmatic sales” since the last quarter. Ripple’s latest report shows a continuation of this deal.
If you want to find more information about Ripple and the development of XRP price, download for free our companion app, Born2Invest. Read the latest business headlines in the crypto sector and not only, with the best online aggregator.
Ripple continued to hold back XRP sales in Q1
Ripple has recently released its market report for Q1 2020, which includes an update on what is happening in the company and the state of the XRP market.
The company started with a commentary on the macroeconomic situation. The report draws attention to “Black Thursday” and the resulting test of the safe haven status of digital assets, including XRP.
Although Ripple admits to some sort of recovery since then, due to the coronavirus situation, the leadership remains cautious about how things might develop in the coming months and years.
“Given the recession and the ongoing uncertainty about the extent of the long-term economic impact that this global crisis will have, we expect continued market volatility and an ongoing test for Krypto to prove a ‘safe asset class’.”
Analysis of Ripple’s sales showed that institutional direct sales (OTC) were $1.75 million in the first quarter of 2020. That is a significant decline from the previous quarter when sales totaled $13.08 million.
If OTC sales for the third quarter of 2019 ($50.12 million) are included in the quarter-on-quarter comparison, there was a significant decline in OTC sales. According to Ripple, OTC sales are used to build demand and liquidity in key regions.
In addition, Ripple continues to maintain the pause in the programmatic selling of XRP. This is good news for XRP owners who are concerned about oversupply in the stock markets.
Global volume increase for XRP
Based on data from CryptoCompate Top Tier (CCTT), XRP’s average daily volume (ADV) for the first quarter of 2020 was $322.66 million compared to $187.34 million for the previous quarter. This represents an increase of 72% over the fourth quarter of 2019 and a 63% increase over the third quarter of 2019 (ADV of $198.10 million). It represents an increase not only in average daily volume, but also the total XRP volume.
The report showed that total XRP volume in the first quarter of 2020 was $29.68 billion compared to $17.24 billion in the previous quarter. This represents an increase of 72% over Q4 2019.
Much of this success was attributed to Ripple’s ODL service, which, according to Ripple, continues to grow in both transaction volume and dollar value settlement.
RippleNet’s On-Demand Liquidity (ODL) service tripled transaction volumes and the value of dollar transactions increased by more than 294%.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Allianz Morocco Enters the Capital of EMOB
Allianz Morocco has become a 33% shareholder in EMOB's capital. The company is positioned on the electric and eco-responsible mobility...
70% of Consumers Want More AR Advertising: Will You Give it to Them?
A recent survey by Ericsson’s mobile ads division, Emodo, has revealed that a majority of consumers now prefer AR advertising...
StartupGym Studio’s Crowdfunding Campaign in Overfunding after 24h
StartupGym Studio, created by Enrico Pandian, has launched an equity crowdfunding campaign on CrowdFundMe to complement a $1.76 million (€1.5...
Payment Giant Nets Increases Stake in POS Fintech Company Orderbird
Nets had already held around 20% of Orderbird - a stake that the Eschborn-based payment service provider Concardis had taken...
City Leaders Announce Major Public Safety Initiatives for 2022
New public safety projects to be provided with federal funding. City leaders at Desert Hot Springs voted recently to issue...
Cannabis2 weeks ago
Clever Leaves Exports Cannabis from Colombia
Biotech2 weeks ago
iDoctus, Accelerating Digital Health to Grow 50% by 2021
Africa2 weeks ago
The Transport Company of Morocco Increased its Turnover
Cannabis2 weeks ago
Recreational Cannabis in Argentina, an Unavoidable Debate for the Congress in the Making