The recent XRP market report from Ripple suggests that its ODL solution thrived in Q1 2023 despite disruptions from the banking crisis.
Despite the disruptive effects of the US banking crisis, Ripple’s On-Demand Liquidity (ODL) solution exhibited robust growth in the first quarter of this year. The recently-released Q1 2023 report for the XRP market disclosed that Ripple’s total ODL sales amounted to $2.93 billion worth of XRP in this year’s first quarter.
The report reveals a slight dip of 1.1% from the previous quarter, with ODL sales amounting to $2.93 billion in Q1 2023, compared to $2.96 billion in Q4 2022. The minimal drop underscores ODL’s resilience, considering the impact of the US banking crisis on Ripple.
Recall that Brad Garlinghouse, CEO of Ripple, confirmed that the California-based technology firm had “some exposure” to Silicon Valley Bank, as previously reported by The Crypto Basic. This confirmation came up shortly after the bank imploded. However, Garlinghouse stressed that Ripple remains in a “strong financial position” regardless.
Ripple’s recent report identified the implosions of Silicon Valley Bank, Silvergate, and Signature Bank as significant factors leading to decreased crypto liquidity. The ensuing banking crisis created a ripple effect that resulted in the de-banking of certain crypto entities and reduced liquidity for ODL.
Ripple disclosed that it temporarily suspended XRP purchases for a few days due to the banking sector crisis. However, the firm promptly resumed purchase activity thereafter. It is worth noting that Ripple sells XRP from escrow to its ODL partners while it purchases XRP from the open market for its internal operations.
Ripple Saw a 59% Surge in XRP Net Sales QoQ
Despite the unfavorable market conditions, ODL thrived as customer flows recovered quickly. Ripple highlighted that Bitso, one of its most prominent ODL partners, achieved an impressive $3.3 billion transaction volume with its Crypto Para Empresas (Crypto for Business) service in 2022. Some of this volume was processed with ODL, as the service uses XRP and stablecoins.
Moreover, Ripple purchased up to $2.57 billion worth of XRP in Q1 2023, leading to a net sale of $361.06 million worth of the asset, as opposed to a net sale of $226.31 million in Q4 2022. This marked a 59.5% increase in net sales QoQ.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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