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Ripple Reports Zero XRP Sales in 1Q 2020 Through Exchanges, OTC Sales Dropped by 86%

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For the second time in a row, Ripple didn’t sell any XRP through exchanges. As per the Q1 2020 report released by Ripple, the company’s XRP sales declined by 86.6% which involved only the institutional direct sales that are done over-the-counter (OTC) to strategic partners.

Total XRP sales were $1.75 million compared to $13.08 million in the previous quarter to focus solely on its OTC sales to “build XRP utility and liquidity in strategic regions including EMEA and Asia.”

Source: Ripple’s Q1 2020 XRP Markets Report
Total sales as a percentage of total volume had a 99.3% drop QoQ from 8bps to 0.6 bps.

The reported daily volume for XRP increased in Q1 2020 from 4Q19, from $187.34 million to $322.66 million, it was even higher than 3Q19’s $198.10 average daily volume.

Volatility also increased from 3.1% to 6.2% which was higher than BTC’s 5.8% but lower than ETH’s 7.3%.

This past quarter Ripple released 3 billion XRP but used only 300 million and the rest were moved to a new escrow account as usual.

The most success reportedly was seen in Ripple’s On-Demand Liquidity (ODL) where the dollar value transacted increased by more than 294%.

Interestingly, Ripple signed on another partner, a UK-based digital transfer services Azimo to use the digital asset XRP for cross-border payments. Azimo is using ODL to send payments to the Philippines that helped the company save 30% to 50%.

“XRP the preferred digital asset for funds transfer”

The world’s fourth-largest cryptocurrency by market cap, as per Messari is currently trading at $0.224, up from $0.134, the level it dropped to during the March sell-off. This growth was mainly this month as the digital asset jumped nearly 30% in April.

In its Q1 2020 report, Ripple also pointed out how digital assets are seen as safe-haven assets during market turmoil in the financial markets.

But while the Bitcoin and Ethereum networks became overwhelmed during the Black Thursday as investors rushed to transfer digital assets to either sell out their positions, meet margin calls, or take advantage of price disruption, the XRP Ledger (XRPL) “remained stable” in terms of transactions pricing and speed, “making XRP the preferred digital asset for funds transfer.”

In the light of continued uncertainty about the long-term economic extent of this crisis and recession, Ripple expects the market volatility to continue. Also, cryptos will have a “sustained test” regarding whether they perform as a safe haven asset class.
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