Blockchain company Ripple covered a host of segments in its latest Q2 2022 report including ODL adoption and XRP token sales.
Ripple recently posted its Q2 2022 earnings result which reveals that the company sold $408 million worth of XRP tokens during that time. This figure marks an astounding increase from the preceding quarter, even as sales accounted for 0.47% of global XRP volume.
However, despite the quarter-to-quarter sales increase, XRP’s total trading volume fell from $96.83 billion in the first quarter to $78.5 billion in Q2. Ripple ascribes the decline to several prevailing macroeconomic factors roiling the markets. According to the report:
“Digital asset markets extended their downturn in Q2 2022, shedding an additional $1T dollars in market capitalization due to macroeconomic headwinds and the crypto credit crisis. The specter of out-of-control inflation, combined with the growing effects of the war in Ukraine, led to a broad-based sell-off in a wide range of tradable assets.”
This period also saw substantial drops in the prices of Bitcoin (BTC) and Ethereum (ETH). Both cryptos logged their worst quarters in a while.
Furthermore, Ripple also stated that several asset correlations are now at all-time highs due to market underperformance. According to the blockchain firm, “with whispers of an impending recession, panic and fear likely drove many asset correlations to record highs. According to data from Skew.com, BTC’s 30-day correlation with the S&P 500 rose to a new 4-year high of 82% during this period, breaking previous highs of 77%.”
Despite predominantly unfavorable external parameters, XRP remains the sixth-largest crypto by market capitalization. The digital currency is currently trading at $0.53 on the Bitstamp exchange and is down 88.85% from its record high.
Ripple’s Surging ODL Adoption, NFT Development, Key Takeaways from Q2 2022 Report
Ripple attributed its XRP Q2 2022 growth to the increasing adoption of its “On-Demand Liquidity” (ODL) product. According to the blockchain company, ODL products experienced a record quarter as a result of expanded usage all over the world. The product’s volume recorded a nine-fold growth on a year-over-year (YoY) basis. Furthermore, as it stands, treasury flows and bulk payments now account for a bigger share of volume, thanks largely to ODL’s increased use cases.
The latest Ripple market report also touched on various other segments. These include the correlation between the non-fungible token (NFT) space and its own XRP Ledger (XRPL). According to Ripple, although the NFT market slowed down alongside broader crypto markets, its total volume surpassed $12 billion. The company further stated that French luxury fashion house Balmain intends to launch the first fashion NFTs with XRPL in partnership with MINTNFT. The initiative is Balmain’s first brand foray into the metaverse.
Ongoing Ripple-SEC Showdown
Amid all these, Ripple is still embroiled in a drawn-out legal battle with the Securities and Exchange Commission (SEC). Back in December 2020, the regulatory agency sued the blockchain company over illegal sales of unregistered securities.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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