San Francisco-based Ripple’s XRP Markets Report confirms that the dollar value transacted using the company’s ODL service grew by over 294%, which may be a positive development for XRP token investors.
The firm’s report noted that XRP liquidity is the “lifeblood” of Ripple’s ODL for international payments.
Ripple management said that they reduced the firm’s total XRP sales from $13.08 million during the final quarter of 2019 to only $1.75 million during Q1 2020. The Fintech firm has been heavily criticized for selling large amounts of XRP, as it has led to a significant decline in the token’s value during the past few years.
Ripple’s report revealed that the XRP token has been integrated into several different exchanges and liquidity instruments.
The company’s report notes that at least part of the increase in ODL may be due to its ability to reduce transaction costs. It also eliminates the requirement of having to pre-fund overseas accounts.
The firm’s report also confirmed its partnership with UK’s Azimo, an online funds transfer service.
The report claims:
“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.”
There are reportedly many other money transfer services that are using RippleNet’s ODL services. These platforms include Finastra, a UK-based financial software developer, and South Korea-based fund transfer services, Sentbe and Hanpass.
WireBarley, a mobile-based remittance service provider, is also using RippleNet’s ODL services.
RippleNet is a decentralized network of financial institutions that use Ripple’s proprietary cross-border payments technology to settle transactions quickly and cheaply.
XRP token’s volatility has doubled, the report noted. It went from 3.1% during Q4 2019 to 6.2% during the first quarter of this year. As mentioned in the report, XRP’s volatility over the past quarter was greater than that of Bitcoin (5.8%), but less than that of Ether (7.3%).
Daily trading volume for XRP jumped from $187.34 million during Q4 of 2019 to $322.66 million in Q1 2020.