Ripple ODL solution has seen its volume grow 8x year-over-year in the first quarter of 2022
Ripple’s XRP-powered on-demand liquidity (ODL) solution saw its volume grow 8x year-on-year in the first quarter of 2022, with RippleNet hitting a $15 billion annual payment volume for the quarter.
Ripple was a buyer of XRP in the secondary market
According to Ripple’s Q1 2022 XRP Markets Report, the volume of its XPR-powered solution saw market “unprecedented growth” as its customers used ODL “for several different use cases beyond traditional remittances or individual payments, including treasury and bulk SME payments.”
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) pic.twitter.com/7TcgmwQmXz
— Asheesh Birla (@ashgoblue) May 2, 2022
On-Demand Liquidity is, notably, a tool that Ripple creates as part of its RippleNet offering and uses XRP to source liquidity in cross-border transactions. Through this, the need to pre-load the account is eliminated. Ripple’s website includes a number of banking giants that are RippleNet users, including Santander, Bank of America, SBI remit, and Banco Rendimento.
Ripple’s report details that in the last quarter, their total XRP sales, measured by net purchases, were $273.27 million, down from $717.07 million in the previous quarter. It added that the company has“continued to engage in sales related to ODL and these volumes have ramped up substantially as Ripple’s ODL business expanded as well.”
“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”, they stated.
The report details that Ripple’s total net sales, the number of net purchases, ended the quarter, representing 0.29% of global XRP volume. The company also notes that some of the wallets used to sell XRP also offer short-term leases to market makers, and these leases are generally considered sales by market participants. These leases will eventually be returned to the company, Ripple added. The total amount of unpaid rentals for the first quarter was 95.3 million XRP.
During the first quarter, a total of three billion XRP was released out of escrow, meaning one billion escrow remained per month compared to the previous quarter. Ripple says 2.4 billion XRP which was returned and then put into new escrow contracts throughout the quarter.
Ripple also detailed that throughout the quarter there were a total of 140.8 million transactions on the XRP Ledger as the community continues to create and develop “more projects and apps to address a variety of use cases.”
The report details Ripple’s new standard, called XLS-20, which aims to “help developers build more advanced and innovative NFT applications” on top of the XRP Ledger, which has yet to be released because of the functionality. NFT is expected to “bring a significant additional transaction volume to the XRP Ledger,” and as such, additional performance testing is needed.
The company added that activating a native NFT object on the Ledger “requires 80% of validators to vote in favor of XLS-20.” Ripple itself is a contributor to the network and operates 4 of the 144 known validators, which means it represents less than 3% of the total.
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