As expected, Ripple has continued to reduce its sales in Q4 2019. Total sales (OTC-only, given programmatic pause) ended the quarter at 8bps of CryptoCompare Top Tier (CCTT). However, obtaining publicly available sources of trusted trading volume remains to be an ongoing challenge for Ripple and will continue to evaluate its benchmarks.
Total 2019 sales were 35.32 million USD less than 2018. Compared to the average quarter sales of the previous 7 quarters of 2018 and 2019 (146.1 million USD average per quarter), Q4 2019 was significantly lower, by approximately 91%.
It is also worth noting that Ripple focused its OTC sales to a few strategic partners, who are building XRP utility and liquidity in strategic regions including EMEA and Asia.
Both XRP volume and volatility dropped compared to previous quarters, while Ripple only released 300 million XRP from escrow. The rest 2.7 billion XRP went back into escrow. This table from our yearly report sums up all escrow activity in 2019.
As far as On-Demand Liquidity is concerned (ODL), Ripple names the currencies that are currently using it: USD (United States), EUR (European Union), AUD (Australia), MXN (Mexico) and PHP (Philippines) and 5 of the 24+ companies (MoneyGram, goLance, Viamericas, FlashFX and Interbank Peru). Moreover, Ripple reveals that there are plans for additional corridors across APAC, EMEA and LATAM in progress for 2020 (we assume that some of the countries that ODL will become available in 2020, will be Thailand, Japan, Brazil, Argentina and possibly Peru).
Volume (in USD) transacted through ODL increased more than a hundred times between Q1 and Q4, and specifically from Q3 to Q4, by 650%. The number of ODL transactions also increased by 390% from Q3 to Q4, showcasing high customer demand for leveraging digital assets, specifically XRP, in cross-border transactions.
Ripple emphasizes on its investment to Bitso (ODL exchange in Mexico) and Xpring’s investments in BRD wallet, Towo Labs and the acquisition of Strata Labs. Xpring also invested in Vega Protocol, Keyless and Flare Networks during Q4 2019. The launch of Xpring’s platform for developers is also an important development that will serve as a central hub for developers to manage everything they need to integrate payments into their applications (as we have seen recently with BitPay).
Ripple’s report on XRP continues with the introduction of derivatives in many exchanges (Binance, Huobi, OkeX, AAX and FTX). According to Ripple, derivatives widely accessible in more mature markets for traditional assets, is an important step in the maturation of digital assets, as they help to improve the efficiency, liquidity and robustness of markets.
Finally, XRP has become available on many of the largest platforms in crypto lending including Genesis, Celsius, Nexo and SALT.