$361M Worth of XRP Tokens Sold in Q1 2023, XRPL Growing Strong

The SEC vs. Ripple is ongoing since December 2020, and both parties are awaiting results, but the case does not seem to be affecting the blockchain company. As per Q1 2023 report Ripple sold $361 Million worth of XRP tokens, versus $226.31 Million in Q4 2022. The crypto entity builds global payment products and developed a decentralized XRP payment system. 

However, Ripple and XRP are two separate entities, where one is a company while the other is a token. Ripple uses XRP and its public blockchain to power its products. 

Ripple Gaining Traction with Strong XRPL Growth

The increase in sales is connected with Ripple’s on-demand liquidity products. These products help customers in moving money across the world without needing correspondent banking relationships. Interestingly, XRP Ledger’s decentralized exchange (DEX) volume increased by 34% from Q4 2022 to $115 Million. 

Ripple argues that they have sourced XRP from the open market, and have ensured that a sufficient supply is always available for the growing liquidity-on-demand business. Also, the net of purchases was around 0.44% of global XRP volume in Q1, 2023. 

The on-chain activity on XRPL in Q1 2023 was strong as transactions increased by 9% to $116 Million, which was $106 Million in Q4. NFTs continue to dominate as over 1 Million were supposed to be minted on the Ledger since XLS-20 went live on the main net. The DEX volume also increased by 34% from $115 Million in Q4 2022. 

At press time, XRP was trading at $0.4792 hopping 0.88%, its market cap gained 0.88% to $24.8 Billion, and trading volume dropped by 41.99% to $973 Million. Ranked at number 6, it enjoys a market dominance of 2.05%. The ROI for XRP is now up by 8059.03%. 

The trend lines form a triangle pattern, meaning there could either be a breakout or a breakdown. However, a relatively straight EMA and negative MACD do not supply clear information. But if the price crosses the immediate resistance present at the $0.4990 mark, it shall move closer to the supply zone. Or it would consolidate above the demand zone. A clear breakthrough of the supply zone might be possible if the positive verdict comes soon. 

The Infamous Case of Ripple vs. SEC

In December 2020, the United States Securities and Exchange Commission sued the blockchain company, Ripple, arguing that their token XRP is an unregistered security. This case is very important from an industry perspective, because if the financial watchdog wins the case, XRP will be rebranded as a security, and its issuer Ripple will have to register under SEC. 

Moreover, every other token might be viewed with the same lens and soon the issuers could be seen lining up at the doors of the SEC for registration. This way the regulator would inadvertently gain control over a majority of crypto entities. 

On March 6, 2023, the court issued a 57-page opinion, deciding over which aspects of SEC’s and Ripple’s experts should be considered on the summary judgment and which should be removed or struck off. 

Ripple is expecting results in the latter half of 2023, but the ball is now in the hands of the court. 

Disclaimer:

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen

Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.