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XRP Markets Report for Q1 2020: ODL is more popular than ever, while Ripple’s XRP sales have hit a new low

Ripple’s On-Demand Liquidity (ODL) payments network tripled in volume during the last quarter, according to the newly released Q1 2020 XRP Markets Report.

In Q1 2020, total XRP sales were $1.75 million vs. $13.08 million in the previous quarter. In addition, Ripple continued the pause of programmatic sales, focusing solely on its over-the-counter (OTC) sales to build XRP utility and liquidity in strategic regions including EMEA and Asia. Total sales (OTC-only, given programmatic pause) ended the quarter at 0.6 bps of CCTT. This is compared to total sales in the previous quarter (OTC + programmatic) of 8bps of CCTT, representing a 99.3% drop Quarter on Quarter (QoQ).

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Source: Q1 2020 XRP Markets Report

The dollar value transacted using ODL increased by more than 294%

The dollar value traded by ODL increased by over 294%, which is good news for token holders with a report describing Ripple liquidity as the lifeblood of Ripple ODL for cross-border payments.

In other good news, Ripple has once again reduced the total XRP sales from $ 13.08 million in Q4 2019 to $ 1.75 million in Q1 2020. The company has been criticized for bringing the balance sheet with XRP sales. The report also noted the token had been integrated into some additional liquidity and exchange instruments.

The report attributes part of the ODL increase to the cost-saving measures implemented by the network to eliminate the need to pre-finance international accounts. It highlights the partnership between Ripple and UK-based digital money transfer service Azimo as an example:

“Azimo launched its service to send payments to the Philippines and, within a few months, ODL saved the company 30%-50% when arranging currency transfers between customers in the Philippines and those in the UK and Europe.”

Numerous other transfer services worldwide use RippleNet’s ODL product including U.K.-based financial software firm Finastra, South Korean money transfer service providers Sentbe and Hanpass, and mobile and online-based cross-border remittance services firm WireBarley.

Increase XRP daily volume

In Q1 2020, three billion XRP was again released out of escrow (one billion each month). In total across the quarter, 2.7 billion XRP was returned and subsequently put into new escrow contracts.

After considering it could pull out of correlation with other significant tokens like Bitcoin, Ethereum, Bitcoin SV, and XRP have skyrocketed towards a 100% correlation following the major crypto downturn in March.

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Source: Q1 2020 Markets Report

XRP’s volatility of daily returns over Q1 is 6.2%, representing an increase in volatility from Q4’s 3.1%. XRP’s volatility over the quarter was higher than that of BTC (5.8%), and lower than that of ETH (7.3%).

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Source: Q1 2020 Markets Report

In addition to being bolstered through new use cases for Ripple outside of cross-border payments, liquidity is increased by the variety and diversity of exchange tradable instruments. In the case of XRP, Q1 saw the integration of XRP into a number of additional exchanges and liquidity instruments.

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