XRP volume increased by more than 107% in Q3

• Average daily XRP volume increased by more than 107% according to Ripple’s third quarterly report.
• Total XRP revenue after deducting purchases was $35.85 million for the last quarter, an increase of more than 10%.

Ripple published its third quarterly report a few hours ago. The average daily XRP volume increased by more than 100% to $403.58 million in Q3 from $196.28 million in Q2. This shows a significant increase in network usage and a growing adoption of the On-Demand Liquidity (ODL) payment solution offered by Ripple.

In addition, total XRP sales net amounted to $35.84 million, an increase of more than 10% from $32.55 million. Ripple states that the company focused exclusively on over-the-counter (OTC) sales and leases as part of providing sufficient liquidity to certain ODL customers. The following table provides an overview of the figures just described.

Source: https://ripple.com/insights/q3-2020-xrp-markets-report/

Furthermore, Ripple has released a total of 3 billion XRP for sale in Q3, of which 2.4 billion XRP have been returned to the escrow account. The company had committed to freeze 55 billion XRP in an escrow account in December 2017 and to release one billion XRP for sale each month.

This measure has been criticized by the community several times in the past and is considered a possible reason for the rather average performance of XRP. However, several representatives of Ripple, including Brad Garlinghouse, argue that Ripple does not or cannot influence the price of XRP.

As the report also states, Ripple recently introduced Line of Credit, a new service that enables RippleNet customers to raise capital on demand. By providing this credit product, customers can quickly acquire capital in the form of XRP from Ripple. The service is currently in beta and is only available to selected ODL customers.

According to the initial feedback, however, the work results are consistently positive, so Ripple will soon expand this service to other markets and customers. Through the Line of Credit, customers can use their capital to manage their day-to-day business but also to develop new markets or reach new customers. In some cases, XRP is provided directly by Ripple for particularly large transactions when partner exchanges do not have sufficient capacity.

For healthy market growth and due to the introduction of the new product, Ripple has repurchased large quantities of XRP, as the table above shows. Ripple states that these measures have stimulated the market and promoted growth and adaptation. Due to this strategy is to be continued for the time being, so Ripple.

XRP is preferred base currency for arbitrage trading

XRP’s fast transaction times and low fees make it an ideal base currency for arbitrage trading. As a result, XRP can be quickly shipped from one exchange to another, allowing the small price differences to be used for short-term gains. The chart below shows that XRP is one of the fastest crypto currencies and that transactions are processed much faster than Bitcoin and Ethereum.

Source: https://ripple.com/insights/q3-2020-xrp-markets-report/