The crypto winter kept cryptocurrency markets in the grip for almost two years until sometime this year, but in this period of grey, one asset stood out. Ripple’s XRP continued to perform well within expectations.
XRP’s Strong Performance in Q2
Ripple has indicated that XRP sales in the first and second quarters of 2019 have increased, which furthers asserts XRP’s immunity to the wild fluctuations in the cryptocurrency industry. Despite the company having large hoards of XRP, they have been restricting sales for the most part. Even still, in Q2 2019, the company managed to sell more than $250 million worth of XRP. Ripple has indicated that it will further reduce future XRP sales.
The last 18 months have been interesting for cryptocurrencies, assets, and tokens. There have been discussions about the possibility of having fake trading volumes, confusion of market information, as well as improper supply calculations by CoinMarketCap.
As a result of the issues arising from data provided by CoinMarketCap, Ripple has now shifted to CryptoCompare for information as the XRP benchmark as a way of addressing the problem of fake trading volumes. It appears this is a jab at CoinMarketCap, but more likely, Ripple is simply seeking transparency in providing market volume information.
The Disparity in Data on Trading Volume
Statistics indicated that there is a huge disparity between CoinMarketCap and CryptoComapre that cannot be overlooked, especially regarding total XRP trading volume and total sales as a proportion of the trading volume. This further asserts that the data provided in Q1 2019 from CoinMarketCap might have been misleading by a huge margin, although that has not been confirmed officially.
XRP is being held in the escrow system and in the quarter, around 3 billion XRP was made available for sale, but 2.1 billion was reinvested in locked contracts. Most crypto tokens suffer from price devaluation, but it appears like XRP is immune to the fluctuation.
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