Ripple sees XRP in its importance for customers from the financial world in the strong upward trend. The 4th quarter of 2021 had recorded a plus of 45 percent here compared to the 3rd quarter.
In the valuation of Ripple (XRP), a decisive criterion is how the in-house altcoin performs in its original field of application as a bridge currency for banks and financial service providers. Here, Ripple had already reported record demand for XRP in Q3 2021 and sees this development confirmed again by record figures in Q4 2021. Ripple’s most recent quarterly report shows a 45 percent increase in ODL (on-demand liquidity) for XRP. Through ODL, Ripple provides liquidity to financial clients using XRP as a bridge currency to organize international money transfers quickly and inexpensively.
The equivalent of just over $1 billion in XRP has been sold under ODL in the final quarter of 2021, according to Ripple, and $432 million in Q3 2021. According to the report, the rapid development led to Ripple itself buying back $322 million worth of XRP from secondary markets. Putting these numbers together, the bottom line is the 45 percent increase for XRP sales from Ripple. The trend suggests that they will continue to buy back XRP at market prices in the future, Ripple says.
Fitting into this positive picture for XRP as a bridge currency is that Ripple now counts more than 20 markets worldwide where ODL can be used. The number of transactions via ODL had doubled in 2021 – and that despite Ripple losing its formerly most important cooperation partner Moneygram. In its quarterly report, Ripple also does not conceal the “headwind” that the U.S. Securities and Exchange Commission is creating through its lawsuit over XRP. Here one still feels unfairly treated. Most recently, Ripple has won some small victories in the process, but at the same time has to accept that the proceedings and thus a verdict will be delayed further due to Corona.
Away from ODL and the legal battle with the SEC, Ripple draws a thoroughly positive conclusion for the crypto year 2021. As it did a few days ago in a general review of 2021 by Ripple, it emphasizes the trending topics of NFTs, sovereign digital currencies (CBDCs) and DeFi, in which it sees itself well positioned and from which it expects positive momentum.
Conclusion: Ripple recognizes momentum for XRP, but price curve in the red
Ripple’s quarterly reports are voluntary in nature and not as complete as analysts would like. But it is reasonable to assume that Ripple is indeed feeling the increasing use of ODL with XRP, with daily volumes for use lacking in absolute numbers. The most important reason for XRP’s disappointing price curve may continue to be the sword of Damocles, SEC. Since the beginning of the year, XRP has lost about 25 percent of its value, falling back to levels seen in the summer of 2021. Even the positive news for XRP in practical use could not change this. A more comprehensive picture for XRP will probably only emerge again when it becomes clear how the SEC vs. Ripple trial will turn out.
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