Ripple experienced a sharp decline in the sales of XRP in the second quarter of the year. The second quarter market report is just released. It states that in comparison to the first three months of the year, XRP sales have fallen.
It explains that the fintech company has sold $75.53 million in XRP, compared to the previous quarter’s $167.7 million. This means a 54.96% decline in the sales volume of the currency. Not only this, the report suggests that the overall market volume also dropped in the second quarter. There is a stark difference when compared to the fourth quarter of 2017 and first quarter of 2018.
- The direct sales from Ripple subsidiary XRP II rose to $16.87 million, up from $16.6 million in the first quarter.
- The programmatic XRP sales fell from $151.10 million to $56.66 million (down 62.5%)
- These only accounted for roughly 0.125% of the global XRP volume.
However, Ripple has sold $73.53 million in XRP amidst low volatility in the second quarter. As consolation to the company’s morale, Ripple states that the second quarter has been a great one on the basis of new customer sign ups. The company shared that the decline in the sales is owed to an overall decline in the bearish market. According to the report:
The decline in both volume and price was consistent across the majority of digital assets, as many moved with tight correlation,
The report also states that:
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 CTO, Stefan Thomas, explained: The messaging platform allows for real-time updates so that simple errors, such as mistakes in spelling the recipient’s name, don’t delay payments from getting facilitated quickly. Another function allows payments to be tracked to their endpoint, all while preserving customer privacy.
The report also refines the stats by adding notes on the funds circulating and funds held as assets. The notes on this make a fair distinction between the volume circulating in the market and the XRP tokens being held by Ripple in escrow. It further clarifies that 3 billion were released but $2.7 billion were returned into escrow during the quarter.
It provides a single source of truth for the transacting counterparties while preserving the privacy of banking customers’ identifiable payment information.
Ripple tries to mark a difference between the currency XRP and itself. Even though it uses an XRP Ledger to back its payment network. Chief executive, Brad Garlinghouse, argued during the CB Insights’ Future of Fintech conference earlier in June 2018, that the ledger is not dependent on the company, going so far as to say that ‘XRP is not a security‘.
The company also remarks a separate identity of Ripple versus XRP. Making XRP an individual as Ripple benefited in the quarter and XRP declined simultaneously. ”(The report) underscores XRP’s independence from Ripple,” says the Ripple CTO Thomas:
XRP is not a security for three reasons: if Ripple, the company, shuts down tomorrow, the XRP ledger will continue to operate; it’s an open-source, decentralized technology – buying XRP doesn’t give you ownership of Ripple.
Coil, a new venture led by Stefan Thomas, that will use XRP for various micropayments applications, such as facilitating “bite-sized” purchases of media is a new entrant in the larger Ripple ecosystem.
Additionally, Scooter Braun, entertainment talent manager, entrepreneur and founder of SB Projects, is pursuing several endeavors that will use XRP to improve artists’ ability to monetize and manage their content.
Both of these new entrants have support from Xpring, a new initiative by Ripple, that will work with companies and projects run by proven entrepreneurs that are building out the XRP ecosystem.
This means that entry in to the Ripple network is free or atleast accessible. The fall in XRP leaves the company unshaken. Even though the fall is sharp and should be worrisome. But the insulation from the demotivation is because all of the Ripple’s eggs are not in the same basket, same market – yes nonetheless.
While other digital assets could technically be related or similar, XRP is quicker and cheaper – at fractions of a penny and about three seconds per transaction. Yet not all Ripple products are created equal in relation to XRP and its $35 billion market. XRP is just one small piece of a suite of products the San Francisco startup offers, whereas Ripple’s set of services are much more extensive.
Winning the attention of new investors (so much so that XRP shot up over 1,000% earlier this year) as well as new clients (with announcements rolling out at a slow and steady clip), the enterprise blockchain startup has been the talk of crypto in 2018. Only until recently that Bitcoin took over the crypto rave.
While Ripple stated;
The decline in both volume and price was consistent across the majority of digital assets, as many moved with tight correlation.
XRP was notably less volatile in the second quarter and XRP’s 9% price decline was in line with bitcoin’s 8.2% decline. But as bitcoin market capitalization began to rise as of May-July, XRP notably fell. During the first quarter when XRP was doing fairly well, the current market leader bitcoin, was on a sluggish low. The overall XRP fall is co-related to bitcoin. XRP sales are hitting the lows whereas other crypto currencies are making comebacks in the crypto world.