Ripple, the company behind the XRP Ledger (XRPL) and the XRP cryptocurrency, has published its Q2 2023 XRP Markets Report, which provides updates on the company’s views on the state of crypto markets, key industry developments, and relevant XRPL and XRP-related news. The report also highlights some changes in the format and content of the report, following the landmark court decision in July 2023 that ruled that XRP is not a security.
Daily spot volume growing by 3x quarter-over-quarter
One of the new features of the report is the insight into XRP/L activity that Ripple’s markets team tracks, including daily spot and decentralized exchange (DEX) trading volume. According to the report, XRP/L activity increased significantly in Q2 2023, with daily spot volume growing by 3x quarter-over-quarter (QoQ) and daily DEX volume growing by 4x QoQ.
Factors responsible for growth
The report attributes this growth to several factors, such as:
- The increased adoption of XRP as a bridge currency for cross-border payments, especially in emerging markets such as Africa and Asia. Ripple claims that XRP offers faster, cheaper, and more scalable transactions than traditional payment methods, and that its On-Demand Liquidity (ODL) service leverages XRP to enable instant settlement of cross-border payments.
- The increased innovation and experimentation on the XRPL, especially in the areas of non-fungible tokens (NFTs), decentralized applications (DApps), and smart contracts. Ripple states that the XRPL is an open and permissionless platform that supports various use cases and applications, and that its recent amendments, such as Hooks and Federated Sidechains, enable more functionality and interoperability on the XRPL.
- The increased liquidity and accessibility of XRP on various platforms, especially after the US court decision that cleared XRP’s legal status. Ripple notes that several cryptocurrency exchanges, such as Coinbase, Kraken, and Bitstamp, relisted XRP on their US platforms after the decision, and that new options markets for XRP emerged on Bit.com and Deribit.
Ripple’s CEO Brad Garlinghouse also commented on the Q2 2023 report on Twitter, saying that “on the plus side, our markets team gives new insight into XRP/L activity they track” and that he is “proud of the progress we’ve made” despite the challenges po sed by the SEC lawsuit.