Ripple Becomes One Of The Biggest Buyers Of XRP

May 5, 2022 2:33 pm

When it comes to crypto firms that support their own native tokens, Ripple is one of the biggest ones as it remains one of the biggest buyers of XRP to date.

Data shows that the company’s demand for XRP is continuing to grow each quarter with the latest quarter of 2021 indicating that the company bought over 300 million XRP.

This strong buying behavior by Ripple indicates that the company is very bullish in the success of its own token and is investing heavily in its future.

This separates Ripple from other blockchain firms which might say they support their own project, but do not actually prove it with their actions.

Ripple’s trend of acquiring XRP has been continually each quarter with the latest quarter being the biggest increase so far.

There are several reasons why the demand has skyrocket recently as shared in Ripple’s quarterly report.

CryptoGlobe.com reports:

Ripple’s report details that last quarter its total XRP sales, net of purchases, were $273.27 million, down from $717.07 million in the previous quarter. It adds the firm has “continued to engage in sales related to ODL and these volumes have ramped up substantially as Ripple’s ODL business expanded as well.”

It adds:

Ripple has been a buyer of XRP in the secondary market and expects to continue to undertake purchases at future market prices as ODL continues to gain global momentum.

The report details that Ripple’s total sales, net of purchases, ended the quarter representing 0.29% of the global XRP volume, according to CryptoCompare’s TopTier volumes.

The firm also noted that some wallets being used to sell XRP also provide short-term leases to market makers, and that these leases are often seen by market participants as sales.

Essentially, the record growth of Ripple’s On-Demand liquidity service means that the demand for XRP will continue to grow from Ripple.

This means that the company itself will continue to be one of the biggest buyers of XRP in the long term as more and more institutions become reliant on Ripple’s ODL service.

This is on top of the institutional demand that other financial institutions will have for XRP in the secondary market which is extremely impressive.

So far, the growth seems to be unaffected by the ongoing SEC lawsuit within the United States which proves Garlinghouse’s statement when he said that the company was already operating under a business model as if it had lost the lawsuit.

Therefore, an actual win in the lawsuit would be tremendously bullish for XRP.

The GM of RippleNet, Asheesh Birla, tweeted:

1/ Coming off our best year yet, RippleNet ended Q1 2022 with record numbers and customer demand. Some of the highlights by the numbers 👇

2/ RippleNet reached a $15B annualized payment volume run rate, as customers expand the use of RippleNet and ODL beyond remittances (including treasury and SME payments)

3/ ODL grew 8x YoY; and I’m incredibly proud to see half of the customers using ODL today upgraded their services from fiat only – a testament to ODL’s product market fit and the vision we had from day one

4/ Global growth remains strong w/ improved product functionality (such as the ability for payments to continue processing even if an ODL exchange partner happens to go down)! APAC is one of the biggest contributors of ODL dollar volume – totaling over $1B in Q1 alone.

So far, it seems that the growth has only started recently which means that there is still a long way before XRP reaches its full potential.

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