Ripple increases in sales as it faces an increase in demand for its ODL service

by Bitcoinarama BOT
0 comment

In Q1 of the year, Ripple’s XRP increased sales by 97% due to increased demand for its On-Demand Liquidity service. This comes at an unexpected time since the company is still in a legal battle with the SEC.

Ripple made a post on its official performance on Thursday, May 6th, where it reported an increase in sales from $76.27 million at the end of 2020 to $150.34 million in Q1 of 2021.

Rise of ODL

Ripple acknowledged that the increased performance credits go to the increasing demand for RippleNet’s working capital service On-Demand Liquidity or ODL. There is a growing engagement from ODL customers, which has positively impacted sales. Even though Ripple has been low-key for over a year, the program has been a savior.

Ripple has been active in engaging ODL customers and critical infrastructure partners through sales and improving customer experience. This has increased XRP liquidity, improved customer experience, and has eliminated the need for pre-funding. It has also helped to increase efficiency as instant global payments are possible. 

Data from CryptoCompare confirm that Ripple accounts for 0.07% of the total XRP volume in the market.

ODL Magic

The secret sauce of ODL is that it helps RippleNet customers instantly liquidize their XRP to other international currencies within three seconds. There is, therefore, no need for holding pre-funded accounts when it comes to international payments. 

This functionality has made it possible for three billion XRP to be released from escrow holdings in Q1. From the three billion, 2.7 billion has been returned to new escrow contracts.

The resurgence is believed to be from Ripple Labs as it purchased a 40% stake from Tranglo, a cross-payments platform. The purchase made it possible for ODL to expand to Southeast Asia.

An interview with Cointelegraph confirmed that the company’s stake in Tranglo led to increased performance. This is also a great strategy when it comes to penetrating the Asian market.

Ripple’s performance is clear evidence that big players have faith in it despite its case with the SEC. There is a growth in the number of whales by 3.5% in Q1, with whale wallets increasing from 308 in 2020 to 319 in 2021.

CoinGecko confirms that XRP price has increased by 648% in a year. In the past 24 hours alone, there have been more than $14 billion XRP that has been exchanged. Its price is at $1.59 and a market cap of $73 billion.

Image by Muaban Tienao from Flickr.

Original post appeared on CryptoUnit.com - Ripple increases in sales as it faces an increase in demand for its ODL service

Related Posts