Sales of Ripple’s XRP token in Q2 increased after dropping to a low in the first quarter of the year. On the other hand, the firm’s On-Demand Liquidity network remains quite popular. The XRP Markets Report indicates that Ripplenet’s On-Demand Liquidity network enjoyed 11-times growth compared to last year while XRP sales exploded in Q2.
Based on the August 3 Ripple’s quarterly report, sales of the firm’s XRP token were 18.6 times higher in Q2 than in Q1. The crypto company said that the XRP sales were $32.55 million from April to June this year. That is significantly high compared to the $1.75 million recorded in the first quarter. But, the company has been criticized for propping up its balance sheet with the XRP sales.
Ripple explained that these sales were due to the company prioritizing over-the-counter (OTC) sales over programmatic ones. That is allegedly part of the effort to offer increased XRP liquidity to the RippleNet’s On-Demand Liquidity (ODL) customers. Furthermore, RippleNet had 11x year-over-year growth in the ODL transaction volume from the mid of last year to 2020.
XRP Price Gains Around 40%
Reports have emerged on August 4, 2020 that the XRP price has rallied 40% in the last seven days and around 8.5% in the past 24 hours. Many predict that the token may surge to $0.35 if Bitcoin continues to remain stable above $11,000.
The latest XRP price surge has attracted investors with over 30 new XRP whales holding between $240,000 and $2.4 million each. That brings the number of accounts that hold over one million of the tokens to 3.7%.
Legal Challenges Persist
For now, Ripple is in the middle of a persistent class-action lawsuit. The long-running lawsuit alleges that the firm misled investors with bullish claims about XRP and later sold the token as an unregistered security.
The legal team representing Ripple and its CEO Brad Garlinghouse say that all statements made overstating the utility of XRP cannot be proven false.