By
Chimamanda U. Martha
April 26th, 2024
Ripple Labs says it has been a buyer in the XRP secondary market and may continue to undertake purchases in the future at market prices.
On its official website, Ripple Labs published its Q2 2020 report on XRP market performance. According to the report, Ripple said that in the second quarter the total XRP sales were $32.55 million in comparison to $1.75 million in the previous quarter.
With no much information regarding the sales, we can delude that either the company is dumping the coins at a faster rate than before or there is an increased demand of the coin to investors just holding for future price speculation or other purposes.
Whichever it is, the XRPL native coin has risen astronomically in the past few weeks. Besides, it broke a multi-week falling trend and seems to be on a new Elliot wave formation.
Details of XRP Q2 Report Published by Ripple
The company reported that it continued to pause its programmatic sales to focus on XRP market liquidity. “Ripple continued the pause of programmatic sales, focusing solely on its over-the-counter (OTC) sales as part of providing increased XRP liquidity to RippleNet’s On-Demand Liquidity (ODL) customers,” the company said in a statement.
The company admitted that more financial institutions are leveraging ODL services, hence improving the general XRP market liquidity.
In addition, the company stated that it is involved in buybacks, as a way of improving XRP market liquidity.
Ripple seems to be controlling XRP market price in a huge way, as Brad Garlinghouse said that digital assets are up approximately 80% this year and the dollar down 3% this year. His comments largely control how investors perceive XRP and ODL markets.
The company further stated that the total sales in the second quarter ended at 18 bps according to CryptoCompare Top Tier metrics. This was a huge jump from the previous 0.6 basis points.
This can largely be seen to have reciprocated in the XRP market price that is trading slightly above $0.31 at the time of writing.
XRP experienced an average daily volume of $196.28 million in Q2 versus $322.66 million in the first quarter. Notably, XRP volatility slashed by half in the second quarter in comparison to the first quarter, 3.0% and 6.2% respectively.
In the past three months, 3 billion XRP were released from the escrow wallet account. However, the company locked back 2.6 billion. The company reported that financial institutions using RippeNet and tapping on ODL features increased almost a dozen year over year in the first half of the year.
“In Q2 2020, ODL accounted for nearly 20% of RippleNet volume. Comparing just H1 2019 with H1 2020, RippleNet experienced 11x year-over-year growth in ODL transaction volume,” the report highlighted.
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