Ripple to ‘Continue’ XRP Purchases; OTC Sales Increased by 10% in Q3
The price of XRP might not reflect this, but Ripple maintains that the purchase of XRP that it started in Q2 “may continue” in order to “support healthy markets.”
XRP is currently trading at $0.257, enjoying a burst of green, for a change, along with the rest of the market, up 31% YTD while still being down 93.45% from its all-time high.
According to Ripple’s Q3 2020 XRP Markets Report, purchasing XRP is a “near-term product solution for the Line of Credit beta,” while in the long-term, the company is building new On-Demand Liquidity (ODL) capabilities that will source XRP liquidity from the open market.
In Q3, the total XRP sales were $35.84 million, an increase of over 10% from the previous quarter’s $32.55 million.
Just like many previous quarters, Ripple didn’t sell programmatically but focused solely on its over-the-counter (OTC) sales and leases “as part of providing increased XRP liquidity to certain RippleNet ODL customers to improve their ODL experience.”
Ripple didn’t explicitly mention MoneyGram, but the remittance firm disclosed recently in its financial results for Q3 2020 that Ripple gave it another $9.3 million, down from $15.1 million in the previous quarter and $16.6 million in Q1.
MoneyGram had a net benefit of $8.9 million after $0.4 million in “transaction and trading expenses.”
Overall, Ripple has given that firm more than $52 million for providing ODL liquidity that uses XRP.
The continued rise of institutional adoption and DeFi marked crypto markets in Q3. Crypto sustainability is finally getting attention, thx to @NYDFS, @energywebx, @xrplf and others. https://t.co/iCbTkewAsp
— Monica Long (@MonicaLongSF) November 5, 2020
In its Q3 report, Ripple also talked about XRP being “extremely energy efficient by design,” with transactions settling at a fraction of energy costs to proof-of-work (PoW) mining networks like Bitcoin.
“Energy consumption of XRP is 57,000x more efficient than BTC,” continued Ripple in its latest argument against Bitcoin, pointing to the NYDFS’s open letter to financial institutions and crypto firms alike to address climate change.