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What is the driving force behind the increase in XRP sales this quarter?

Report details XRP sales in 2021

Ripple, a San Francisco-based fintech company, published its market report for the first quarter of 2021 on May 6. As expected, there were some important insights regarding XRP sales amid the ongoing dispute with the SEC.

That would be hard to believe, considering the ongoing legal battle against America’s regulatory watchdogs, but Ripple reported an increase in XRP sales compared to the fourth quarter of 2020.

According to the insights provided by Ripple, total XRP sales jumped from $ 76 million in the fourth quarter of last year to almost $ 150 million in the first quarter of 2021. This slope was directly attributed to the growing demand for liquidity on demand or RippleNet’s ODL service.

“The increase in XRP sales can be attributed to a deeper involvement of the main ODL customers. For more than a year, Ripple did not sell programmatically. Ripple continued to engage in sales to support ODL and leading infrastructure partners as part of providing greater XRP liquidity to improve the ODL experience for certain customers, eliminating the need for pre-financing and enabling instant global payments. ”

The same can be seen in the statistics provided by Ripple:

Source: Ripple

What is the meaning?

The rumors circulating about Ripple following in Coinbase’s footsteps to launch its IPO / direct listing may have helped boost XRP sales as well. Another example of Ripple’s growth was its recent acquisition of a 40% stake in Tranglo, a pioneer in cross-border payments in Asia, as part of its expansion of Ripplenet’s Liquidity On Demand (ODL) in Southeast Asia. This partnership would help Ripple to meet its growing demand for ODL.

The global volume of XRP, as well as the daily volume, highlighted an increase that directly resembled the upward trend in its ODL operations.

  • Global XRP volume: According to CryptoCompare, total volume for the first quarter overshadowed that of the fourth quarter (2020) by almost 38%

Source: Ripple

The daily volume of XRP also painted a similar picture. CryptoCompare Top Tier reported that the daily volume for XRP increased significantly in the first quarter of 2021 from the fourth quarter of 2020. The average daily volume reported was $ 2.26 billion in the first quarter versus $ 1.61 billion in the previous quarter .

Source: Ripple

Source: AMBCrypto

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