Ripple Reports a 97% Jump in XRP Sales for 2021 Q1 even as Legal Battle with US SEC Intensifies
Ripple is currently going through an intense legal battle with the United States Securities Exchange Commission (US SEC). Despite that, the company has reported an increase in sales of XRP by 97% in the first quarter of 2021. In its Q1 markets report, published recently, Ripple has revealed that its total sales net of purchases has increased from US$76.27 million in the fourth quarter of 2020 to $150.34 million in the first quarter of 2021.
In its report, Ripple has made it clear the tremendous growth in its sales has come mainly because of the increasing demand for its On-Demand Liquidity (ODL) service, the working capital service of RippleNet. The company has said:
“The increase in XRP sales can be attributed to deeper engagement from key ODL customers. For well over a year, Ripple has not sold programmatically…Ripple continued to engage in sales to support ODL and key infrastructure partners as part of providing increased XRP liquidity to improve the ODL experience of certain customers, eliminating the need for pre-funding and enabling instant global payments.”
Ripple has also said that their ODL service enables the clients of RippleNet (global payments network for financial institutions across the world) to source instant liquidity in XRP. This crypto coin of Ripple can be converted into an international fiat currency within 3-seconds. That’s how the need for holding pre-funded accounts for international payments gets removed with the help of XRP.
In its report, the company also made it clear that in the Q1 of 2021, 3-billion XRPs was released from its massive escrow holdings. However, 2.7 billion XRPs were returned to new escrow contracts.
The host of the Crypto Valley Association podcast and managing partner at Storm Partners, Sheraz Ahmed, had said a month back that:
“XRP’s upward momentum is fueled by Ripple’s newly announced 40% stake in Asia’s leading cross-border payment processor, Tranglo. The partnership will undoubtedly increase Ripple’s exposure to the Asian market.”
The wallets that are holding 1-million-to-10-million Ripple XRPs have increased from 1,125 in Q4 2020 to 1,196 in Q1 2021. This means that there has been an increase of 6.3%.
The whale wallets, holding 10-million or more XRPs, have also increased from 308 in the fourth quarter of 2020 to 319 in the first quarter of 2021. This means that the whale accounts have also increased by 3.5 during Q1 2021.
Data available from CoinGecko shows that in the last 12-months, the price of XRP has increased by 648%. Currently, the price of XRP is hovering around US$1.59 with a market capitalization of US$73 billion. In the last 24-hours, more than US$14 billion XRPs have changed hands.
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