Ripple’s latest Q3 2020 report shows the firm made On-Demand Liquidity (ODL) sales of $81 million this quarter. By contrast, the previous quarter had ODL sales of $33 million.
In addition, the Average Daily Volume (ADV) also showed a marked increase. This quarter’s ADV is up 106% to $404 million dollars, leading to a total XRP volume in Q3 2020 of $37 billion.
The solid quarterly performance is met with a new activity in “total purchases”, which came to $46 million this quarter. It refers to Ripple acting as a buyer of XRP in the secondary market.
Ripple’s “Line of Credit” Boosts ODL Sales
Last quarter saw Ripple launch a new beta service called “Line of Credit”. Essentially, this allows ODL customers to buy XRP on credit directly from Ripple.
The thinking behind “Line of Credit” is to expand XRP use for the purposes of cross border payments.
“With Line of Credit, customers can purchase XRP from Ripple on credit which provides capital upfront to help accelerate their business performance and scale. Line of Credit has been piloted by ODL customers and the initial feedback is overwhelmingly positive. Companies can use the capital to further invest in their business to enter new markets and reach new customers.”
The ODL payment service, previously called xRapid, uses XRP as a bridge between two fiat currencies. It is advantageous over legacy payment methods in that ODL customers can hold money in their preferred currency. As such, transfers no longer require fully funded accounts in all of the currencies dealt with.
By adding credit to the mix, ODL customers have more flexibility over capital allocation.
Based on the 150% increase in ODL sales, the “Line of Credit” beta service is a hit with ODL customers.
Ripple Buying XRP to Offset Concerns of Oversupply
XRP dumping, also known as programmatic sales, was the topic of much frustration within the XRP community. Following a sustained bout of community pressure, this practice ceased in Q4 2019.
Source: XRPUSDT on TradingView.com