In Q4 2022, Ripple’s On-Demand Liquidity (ODL) XRP sales net of purchases came to roughly $226.31 million.
The firm announced this in its “Q4 2022 Markets Report,” posted today on Twitter.
Notably, total XRP sales in Q4 were $2.964 billion, approximately $100 million more than Q3’s total. However, due to an increase in Ripple buybacks during the quarter, the business reported decreased revenues net of purchases. According to the report, it rebought XRP valued at roughly $2.737 billion instead of about $2.508 billion in Q3. Consequently, net sales fell by nearly $100 million in the fourth quarter.
It is important to note that the rising demand for Ripple’s ODL service is the driver of the increase in overall XRP sales. The service uses XRP as a bridge currency to facilitate almost instant cross-border payments. It was confirmed in recent statements from Ripple CEO Brad Garlinghouse that 60 percent of Ripple transactions in 2022 were handled via ODL.
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The product presently supports almost 40 payout markets, which account for nearly 90% of the foreign exchange markets, as is frequently stated in reports. A considerable increase from the three markets there were two years ago.
According to the report, in Q4 2022, the service was extended to France, Sweden, and Africa through partnerships with Lemonway and Xbaht. The business also claims that it has increased the number of companies using its service for cross-border payments related to business.
According to data from CryptoCompare TopTier volumes, Ripple’s net XRP sales made up just 0.35% of the total XRP volume globally in Q4. Meanwhile, XRP volumes fell along with the price of the coin throughout the protracted crypto winter. Based on the report, volumes decreased by 40% in Q4, while the price of XRP declined by 30%. As a result, Average Daily Values Traded (ADVs) were around $689 million, down 13% from one quarter to the next and 64% from one year to the next.
Other pertinent information is that Ripple’s outstanding XRP leases in Q4 amounted to around 57.7 million XRP. Notably, Ripple frequently leases some of the XRP it intends to sell to market makers and other participants in the market. As was previously mentioned, Garlinghouse revealed at Davos that the company had a $10 million FTX exposure via an XRP lease. He dismissed it as inconsequential, claiming that it only accounted for 1% of the company’s equity.