- Ripple has delivered impressive Q1 2023 results, reporting a surge in total XRP sales.
- Decentralized exchange volumes on the XRP Ledger have increased in Q1 2023.
- XRP markets have shown resilience with a 46% increase in volumes.
In Q1 2023, Ripple delivered impressive results, as the company reported a surge in total XRP sales. Net of purchases, the figure stood at $361.06 million, which marked a significant improvement from the previous quarter’s $226.31 million.
The XRP Ledger’s on-chain activity continued to perform well, with decentralized exchange volumes increasing by 34% to $115 million in Q1 2023, compared to Q4 2022. Additionally, the average daily volume (ADV) on centralized exchanges saw a considerable jump of 46% to reach $1 billion in the first quarter.
Despite experiencing setbacks in the financial sector, including the collapse of Silvergate and the shutdown of Signature Bank, XRP markets showcased resilience, recording a 46% quarter-over-quarter increase in volumes. This growth can be attributed to market recovery and large volatile events that tend to spike volumes.
The exceptional performance of Ripple’s XRP in Q1 2023 is a testament to the company’s unwavering commitment to innovation and disruption. As blockchain and cryptocurrency continue to reshape the financial industry, Ripple remains at the forefront, driving change and revolutionizing how we transact value.
Key Takeaways from the Ripple Report
- Ripple only sells XRP in connection with ODL transactions and has been sourcing XRP from the open market since 2020 to ensure a sufficient supply for its growing ODL business.
- On-chain activity on the XRPL remained strong, with transactions increasing 9% to $115 million compared to the previous quarter. NFTs continue to drive activity, and over one million assets have been minted on the Ledger since XLS-20 went live on mainnet.
- Bitso, the leading crypto exchange in Latin America, announced that it had surpassed $3.3 billion in transactions between the US and Mexico in 2022 through its institutional crypto solutions, utilizing Ripple’s ODL product.
- The EU, UK, and UAE proposed new regulatory regimes for crypto, which could provide clarity for the industry. The EU’s final vote on the Markets in Crypto Assets regulation (MiCA) passed on April 20.
- The UK government introduced comprehensive regulatory proposals for a new regulatory regime for crypto. In the Middle East, the UAE passed a new law governing virtual assets, setting up the country’s initial regulatory authority for cryptocurrencies at the federal level.
- XRP Ledger developers proposed a new interoperability standard, XLS-38d, which aims to enable the transfer of digital assets and data between different blockchains, regardless of the underlying protocol or programming language used.
On the Flipside
- Despite its impressive performance in Q1 2023, Ripple’s future success will depend on its ability to navigate regulatory challenges and maintain its position as a blockchain and cryptocurrency industry leader.
- Ripple’s XRP sales have faced scrutiny from regulators, with the SEC filing a lawsuit against the company in 2020 for allegedly selling unregistered securities.
Why You Should Care
A good Q1 report is good news for Ripple and the entire crypto industry, reflecting a positive trajectory for the company and the market. As Ripple continues to drive change and revolutionize how we transact value, it opens up more opportunities for individuals and businesses to access faster and more secure payment systems.
Ripple is not a Layer-1 blockchain but a payment protocol that runs on top of its XRP Ledger blockchain. The XRP Ledger is a Layer-1 blockchain, meaning it is a standalone blockchain network that can operate independently without relying on other blockchains. Ripple’s payment protocol is designed to be used with the XRP Ledger, allowing for fast and cost-effective cross-border transactions.
While Ripple’s payment protocol can technically operate without XRP, it is a significant part of Ripple’s business strategy and is used for liquidity and settlement in cross-border transactions.
As with any investment or business venture, Ripple has risks. However, Ripple has been making strides in establishing partnerships with financial institutions and regulatory compliance to mitigate risks.
No, Ripple is not a dead crypto. Ripple’s XRP Ledger has seen significant growth in on-chain activity and adoption in the first quarter of 2023. Additionally, Ripple has been actively working to establish partnerships with financial institutions and expand the use cases for XRP. While Ripple has faced challenges and setbacks, it remains at the forefront of driving change in the blockchain and cryptocurrency industry.
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