Despite the ongoing legal battle with the Securities Exchange Commission, Ripple reported a 97% increase in sales at XRP for the first quarter.
Ripple released its first quarter market report on May 6, announcing that total revenue after purchases had increased from $ 76.27 million in the fourth quarter of 2020 to $ 150.34 million in the first quarter of this year.
Ripple noted that the increase in sales was driven by growing demand for RippleNet’s Working Capital Service On-Demand Liquidity, or ODL:
“The increase in XRP sales can be traced back to a stronger engagement of the most important ODL customers. Ripple has stopped selling programmatically for well over a year. “
The company added, “Ripple continued to be in sales to support ODL and key infrastructure partners to improve the XL experience of certain customers, improve pre-financing, avoid instant pre-financing, and enable instant global payments.”
According to CryptoCompare, Ripple’s total revenue accounted for only 0.07% of global XRP volume.
According to Ripple, ODL enables RippleNet customers to raise instant liquidity in XRP that can be converted to international currencies within three seconds, eliminating the need for pre-funded accounts for international payments.
The company also reported that three billion XRP had been released from its massive trust holdings during the quarter – however 2.7 billion XRP had been returned to new trusts.
Some have attributed XRP’s recent resurgence in part to Ripple Labs’ purchase of a 40% stake in cross-border payments company Tranglo, which it acquired to expand its ODL service to Southeast Asia.
Sheraz Ahmed, moderator of the Crypto Valley Association podcast and managing partner at Storm Partners, a provider of crypto and blockchain solutions, told Cointelegraph on April 9:
“XRP’s upward momentum is being driven by Ripple’s recently announced 40% stake in Asia’s leading cross-border payment processor Tranglo. The partnership will undoubtedly increase Ripple’s exposure to the Asian market.”
Additionally, wallets with an XRP between 1 and 10 million XRP increased 6.3% from 1,125 in the fourth quarter to 1,196 in the first quarter.
The SEC case, accusing Ripple Labs of selling $ 1.3 billion worth of unregistered securities, doesn’t seem to stop big players from increasing their holdings. The report found that the number of XRP whales increased by 3.5% in the first quarter. The company released data on Santiment showing the number of whale wallets with 10 million XRP or more increased from 308 in the fourth quarter of 2020 to 319 in the first quarter of 2021.
According to data from CoinGecko, the price of XRP has increased 648% in the past 12 months. John Wagster, an attorney for Frost Brown Todd, spoke to Cointelegraph on April 18 and attributed XRP’s mammoth profits to the uptick in crypto markets in general rather than the firm’s recent legal successes in defending the SEC case.
More than $ 14 billion in XRP has changed hands in the past 24 hours, currently trading at $ 1.59 with a market cap of $ 73 billion.