Ripple Reports Explosive Growth Of On-Demand Liquidity Solution

By Kevin • April 29, 2023 11:41 am • Comments

So far, since the start of the SEC lawsuit, Ripple has acquired around $11 billion of XRP which is an impressive amount.

In Ripple’s latest report, the company revealed that it had  also sold more than $361 million worth of XRP tokens in the first quarter of the year.

The sales of XRP were done in order to support Ripple’s On-Demand liquidity solution which allows for financial insitutions to do worldwide remittance transactions in a fast and cheap way.

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The amount that was sold has increased significantly from the last sale which was around $226 million in the last quarter.

The increase in the amount is indicative of the explosive growth of Ripple’s ODL solution as well as the overall size of the XRP ledger ecosystem.

As adoption continues to increase, it is expected that use of XRP to power Ripple’s solutions will continue to surge exponentially.

CoinDesk reports:

The company builds global payment products and has developed the XRP payment system, which it describes as decentralized. While Ripple and XRP are separate entities, Ripple uses XRP and XRP’s public blockchain to power its products.

The sales were in connection with Ripple’s on-demand liquidity product, which helps customers to move money around the world without the need for correspondent banking relationships.

XRP Ledger on-chain activity remained strong, with decentralized exchange volume increasing 34% from the fourth quarter to $115 million.

Ripple said it has sourced XRP from the open market to ensure there is sufficient supply available for the growing on-demand liquidity business. The total sales by Ripple, net of purchases, ended the quarter at 0.44% of global XRP volume.

In addition to supporting its products, Ripple has bought nearly $11 billion in XRP since the start of the SEC lawsuit.

Ripple and XRP are separate entities so the fact that Ripple continues to acquire XRP indicates the strong bullish position that it has for its own token.

In fact Ripple is using 78% of its XRP sales revenue in order to reacquire XRP on secondary markets and buying activity has only strengthened since the start of the lawsuit.

The only time that Ripple had stopped buying XRP was during the few days where it was observing the US banking crisis that happened back in March.

However, after that had ended, the company has since resumed  buying XRP as its ODL solution continues to grow.

BlockWorks.co reports:

The San Francisco-headquartered firm began buying XRP one year later, Blockworks previously reported. At the time, Ripple stated it was doing so to “support healthy markets.”

Since then, Ripple has dramatically ramped up its XRP purchases — which do interact with crypto exchange prices — despite its high-profile run-in with the SEC.

XRP traded for $0.22 shortly after the SEC’s lawsuit went public, but rallied up to 700% during the 2021 bull market. It’s now hovering around $0.47.

Still, the exact impact of Ripple’s market activity on XRP’s price remains unclear. Blockworks has reached out to Ripple for comment.

“Since 2020, Ripple has sourced XRP from the open market to ensure there is a sufficient supply of XRP available for our growing ODL business,” Ripple said in its disclosure.

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