Ripple confirms Q2 XRP sales more than halved even as customer base grew
Ripple on Tuesday confirmed that it saw a whopping 56 percent sequential drop in its second-quarter XRP sales, though it pointed out that the figure was just “a drop in the bucket of an XRP market that traded $45.35 billion.” Ripple, which facilitates sending money globally, highlighted the fact that it was still the best quarter for the company in terms of customers it has signed up. Ripple did not disclose the number of customers signed during the quarter.
The software company posted quarterly XRP sales of $73.5 million, as compared to its first-quarter XRP sales of $167.7 million. Out of this, Ripple sold $56.7 million XRP programmatically, which accounts for a mere 0.125 percent of the total XRP volume traded worldwide in the quarter.
XRP volatility lowest in 5 quarters
Ripple also commented on XRP’s prices, saying that the coin’s price decline of 9 percent was more or less in line with Bitcoin’s [BTC] price drop of 8.2 percent. Ripple added that the token’s volatility fell to 5.7 percent in the second quarter, its lowest since the fourth quarter in 2016!
However, the company pointed out that a variety of factors in the broader cryptocurrency market were in part responsible for the sharp decline in XRP’s prices compared to the last two quarters. Ripple mentioned that total market capitalization of all cryptocurrencies had dropped 57.8 percent from the start of the year, to as low as $254.7 billion by mid-year, even as the number of initial coin offerings (ICOs) kept rising.
Concerns in the market regarding regulatory actions globally have played a role in dragging down prices.
Even though the U.S. Securities and Exchanges Commission (SEC) said that it did not consider Ethereum [ETH] to be a security, the market did not really react and there wasn’t a sustained positive momentum.
“Traders have yet to distinguish among the intrinsic values of the best known digital assets. As the industry matures and decides what it deems most useful and valuable, we should expect to see more separation,” the company said in a statement.
Digital asset trading in South Korea drops
Ripple also mentioned that a drop in South Korean cryptocurrency trading could have been a factor in the negative price movement in the market. Earlier, South Korea was a leading in terms of trading in virtual currencies, accounting for close to 70 percent global trade volumes on some days.
By the end of the second quarter, the country’s cryptocurrency trading dropped sharply, accounting for just a fourth of global trade volumes. This could be because of increased incidences of hacks in prominent crypto exchanges in the country.
Just earlier this month, South Korea’s central bank had said that local banks were seeing a continuous dip in investments of the country’s crypto assets.
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