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- Ripple sold XRP worth $150.34 million in the first quarter of 2021, 97% more than sales in the previous quarter.
- Ripple attributed the prominent gain to the growing demand of RippleNet’s On-Demand Liquidity (ODL).
- Ripple’s intense lawsuit battle against the SEC doesn’t seem to be barring the firm from expanding its holdings.
Ripple, one of the largest global payments settlement systems and currency exchange networks, recently posted its “Q1 2021 XRP Markets Report,” which reported a 97% increase in Ripple’s native token XRP sales.
XRP Sales: Q1 2021 vs. Q4 2020
Despite being waist-deep into the ongoing legal battle with the U.S. Securities Exchange Commission (SEC), Ripple sold XRP worth $150.34 million in the first quarter of 2021. This recent figure is almost twice the $76.27 million sold in the fourth quarter of 2020. According to CryptoCompare, Ripple’s total sales accounts for just 0.07% of global XRP volume.
Growing ODL Demand Drove Sales
Published Thursday, Ripple’s market report accredited this major gain to the growing demand of RippleNet’s working capital service On-Demand Liquidity (ODL). It read, Ripple hadn’t “sold programmatically” for over a year; the “deeper engagement from key ODL customers” made the increase possible. Ripple engaged in sales to provide “increased XRP liquidity” to support and improve the “ODL experience of certain customers.”
The ODL lets RippleNet users source instant XRP liquidity that can be converted into international currencies within three seconds, so no need to hold pre-funded accounts.
Fueled By Tranglo Stake Purchase
Last month on Cointelegraph, Sheraz Ahmed, the Crypto Valley Association podcast host and managing partner at Storm Partners, speculated, Ripple labs’ purchase of 40% stakes of the Asian cross-border payments firm Tranglo, for its ODL services expansion in Southeast Asia has fuelled this XRP resurgence.
Lawsuits Won’t Limit Ripple.
The intense lawsuit battle with SEC accusing Ripple of selling unregistered securities worth $1.3 billion isn’t seemingly stopping the firm from expanding its holdings. Instead, there’s a 3.5% increase in the number of XRP whales in Q1. Via Santiment, the firm even posted data revealing “whale wallets” with 10 million or more XRP increased from 308 in Q4 2020 to 319 in Q1 2021. Meanwhile, wallets with 1 million to 10 million XRP grew by 6.3%, from 1,125 in Q4 to 1,196 in Q1. Ripple also reported the release of 3 billion XRP from its massive escrow holdings, while 2.7 billion XRP returned to new escrow contracts.
Crypto Market Bull Increased Sales
According to CoinGecko, XRP prices increased by 648% in the past 12 months. Frost Brown Todd’s attorney John Wagster believes that rather than the firm’s series of legal wins against the SEC, the bullish crypto market, in general, is the cause of XRP’s mammoth gains.
XRP, the fifth-largest cryptocurrency by market cap, is currently trading at $1.6, with a market cap of 73 billion and a 24-hour trading volume of around $14 billion.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
