Ripple Labs recently released the XRP markets report for Quarter 2 of this year. The report details the developments that have occurred over the past 3 months regarding the XRP space and provided a perspective on institutional investors.
Primarily, Ripple sold around $73.53 million of XRP, with these sales accounting for 0.125% of the global volume of XRP transactions. This includes $56.6 million worth XRP sold programmatically, and $16.8 million in XRP through direct sales from XRP II LLC, a registered MSB.
Out of the 55 billion placed in escrow by Ripple, 3 billion were released this quarter, with 2.7 billion returned to escrow.
Ripple’s escrow of XRP consists of independent and discrete on-ledger escrows that release a total of one billion XRP each month. The purpose of this is to provide an upper limit of sorts on the amount of new XRP that can be brought into circulation.
Ripple’s blog on the topic states:
“The amount of XRP actually released into circulation will likely be much less than this. Any additional XRP leftover each month will be placed into a new escrow to release in the first month in which no escrow currently releases.”
The second quarter saw the remaining 300 million XRP being used to “help support the XRP ecosystem”. In May, Ripple announced the launch of Xpring, a financing program for new developments in the XRP ecosystem. It also aims to incentivize the creation of new use-cases for the XRP token.
This includes the entry of Coil into the XRP ecosystem. Coil is a company led by one of the creators of the InterLedger Protocol [ILP], Stefan Tomas, and aims to utilize XRP in conjunction with ILP to allow for supporting online content through micropayments.
Moreover, XRP is being used by Scooter Braun, an entertainment talent manager who has managed the likes of David Guetta, Ariana Grande and Justin Bieber. Braun is utilizing XRP to “improve artists’ ability to monetize and manage their content” through his company, SB Projects.
Ripple also provided insights on the current state of the market, pointing to the correlation between the price of XRP and the overall market cap.
“The tight correlation is indicative of a market that is still in its infancy. Traders have yet to distinguish among the intrinsic values of the best known digital assets. As the industry matures and decides what it deems most useful and valuable, we should expect to see more separation.”
Ripple further reinforced the differences between Ripple and XRP, stating:
“It’s also important to note that despite Ripple having its best quarter ever in Q2 — in terms of customers signed — XRP’s price continued to decline with those of other digital assets, underscoring XRP’s independence from Ripple.”
Ripple also spoke about the general position the market was at, dealing with issues of regulatory concerns. Moreover, the report had a section dedicated to the announcements made in the banking space, with respect to cryptocurrency. They spoke about the developments conducted by Goldman Sachs, JP Morgan, Nasdaq, Fidelity and Nomura. They stated:
“Nevertheless, it’s clear that financial institutions are beginning to build crypto divisions and establish technological solutions to take advantage of the opportunity at hand.”
The volatility of the XRP token was at a low, with the XRP market slowing considerably in comparison to previous quarters. The volatility of the token was 5.7%, the lowest since Quarter 4 of 2017. Interestingly, Quarter 2 of 2017 saw the volatility of 22.3%.
The price of XRP has taken a hit, however, losing 50% of its value since a high in May, which saw it achieve a value of $0.91. It is currently trading at $0.45, after almost a month being contained tightly within the $0.40 and $0.50 marks.
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