Ripple Labs CEO Brad Garlinghouse praised the first number as a significant milestone on Twitter. The amount of XRP held by the corporation has dropped below the 50.09 billion XRP circulation supply for the first time.
Ripple In The Past Few Years
Ripple has concentrated on utilizing XRP and the XRPL in our solutions for the past ten years due to their efficiency, safety, and scalability for value transfer. There is an obvious benefit in using XRP in transaction flows as more consumers do so.
The business has historically come under fire for keeping the XRP Ledger and the price of the XRP coin under centralized control. The fact that the corporation holds more than half of the available quantity of XRP coins has consistently been a significant point in this case.
Analysts have also focused on the monthly escrow releases as well as the sales of XRP on the central and secondary markets. The business once more disputes this accusation in its Q3 report and refers to the XRPL’s consensus protocol.
According to Ripple, the firm’s custody of XRP has been used by detractors to argue that Ripple controls the XRP Ledger. That is untrue. Federated Byzantine Consensus, which is used by the XRP Ledger (XRPL) to verify payments, add extra functionality, and protect the platform, gives each validator server one vote regardless of the amount of XRP they hold.
Just 4 of the more than 130 authorization nodes on the XRPL are now operated by Ripple, a significant decrease from a few years ago.
Ripple Purchasing XRP Via The Secondary Market
Ripple is still repurchasing XRP on the secondary market is another crucial lesson for XRP traders. The XRP purchased back will be sold to On Demand Liquidity (ODL) businesses, demonstrating the continued growth in requests for XRP-based remittance solutions.
According to Ripple, Brazil, a significant marketplace in LATAM, is where On-Demand Liquidity officially started. The business joined forces with Travelex, enabling the beginning of trade between Brazil and Mexico. Additionally, iRemit (Philippines) and FOMO Pay (Singapore) stated they would use ODL for treasury flows.
Gross of transactions, overall XRP sales came to $310.68 million, a decrease from the $408.90 million last quarter. Regarding this, the statement also mentions that XRP is still only traded in tandem with ODL operations and not through programmatic sales, which were stopped in Q4 2019 in response to solid complaints. ODL volume has grown as a result of worldwide expansion.
Ripple has purchased XRP on the secondary market and anticipates making more acquisitions as ODL grows in popularity worldwide. Net of transactions, Ripple’s total sales were 0.42 percent of the world’s XRP amount after the quarter. Despite the present pause in the cryptocurrency market rally, XRP continues to trade above the 200-day moving average.