Ripple Officially Addresses Misreported Data Volumes; Sets New RippleNet Record

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Ripple Inc. has published its Q2 financial report. This report gives an in-depth description of Q2 programmatic and institutional sales, new partnerships amassed and commentary on Q1 market developments.

According to this report, XRP gained 28.20% in the course of Q2, closing at $0.40. Its daily returns volatility throughout Q2 was at 5%, which marked a modest increase from Q1. Additionally, in Q2, XRP had been listed on 12 new exchanges adding up to a total of more than 130 trading platforms.

Ripple Has A New Partner

In June, Ripple announced that they were actively looking for solutions to mitigate the issue of inaccurate trading volumes reported for digital currencies adding that they expect sales in Q2 to be significantly lower compared to Q1, which were reported by CoinMarketCap.

Subsequently, Ripple partnered up with CryptoCompare as a benchmark for its trading volumes as it trusts CryptoCompare’s data indices to eliminate any discrepancies in reported trading volumes.

Case in point, according to data from CoinMarketCap, XRP’s average daily volume (with a “majority of unverified volumes”) stood at over $1.70B in Q2 and $595M in Q1 whereas according to CryptoCompare, XRP’s average daily volume was $156M and $429M in Q1 and Q2 respectively.

As per CryptoCompare, institutional direct sales rose from $61.93M in Q1 to $106.87M in Q2, which is a close to 73% increase while programmatic sales rose from $107.49M in Q1 to $144.64M in Q2. Therefore, in Q2, XRP total sales soared by 47% from $169.42M in Q1 to $251.51 in Q2 with the institutional direct sales playing a huge role in this upswing.

Major Partnerships And Other Business Developments Bagged

A total of three billion (one billion in each month of the quarter) in XRP was released from the escrow and only 2.1 billion returned as escrow contracts. The remaining 900 million was directed to Xpring developments and the partnership between MoneyGram and RippleNet.

The report also notes that the number of transactions on RippleNet skyrocketed in Q2. On xRapid, the number of transactions surged by 170% from Q1 to Q2 while live partners rose by 30% in Q2.

What To Expect In Q3

Ripple is optimistic that going into Q3, transaction volumes on RippleNet will grow as more and more customers and partners go live. Ripple will likely sign more partnerships in Q3 with various institutions to foster cross-border payments, as is the mantra that Ripple lives by.

Nonetheless, despite the impressive XRP sales in Q2, Ripple plans to reduce future sales in order to further curb the issue of inflated trading volumes, stating:

“Ripple plans to take a more conservative approach to XRP sales in Q3”

The report also acknowledges that in the second quarter, there was increased institutional interest as banks, traditional brokerage firms, and tech companies forayed into the digital assets and blockchain ecosystem. This will be widely witnessed in Q3.

Notably, in Q2, regulatory activities were on the rise especially in the wake of the unveiling of Facebook’s Libra. US Treasury Secretary, Steven Mnuchin warned that in the near future, the government is planning on unleashing very strict regulations on cryptocurrencies.

Source: ZyCrypto