- Sales have declined by 87% since Q4 2019
- Ripple's current focus has been to build utility and liquidity
- Average XRP daily volume has increased to $322 million from $187 million last quarter
Ripple released its XRP sales report for Q1 2020 on April 30, with the figures being the lowest it has ever been in the first quarter of any year. Compared to Q4 2019’s sales of $13.08 million, Ripple has only managed $1.75 million worth of XRP sales in Q1 2020.
Having paused programmatic sales since the start of Q3 2019, Ripple sales were solely as a result of its over-the-counter sales, in a bid to “ build XRP utility and liquidity in strategic regions including EMEA and Asia.” Average daily volume for XRP has improved over Q4 2019, however, jumping to $322.66 million from $187.34 million.
XRP sales figures for Q4 2019 and Q1 2020. Source.
The report alludes to March 12, now more commonly known as “Black Thursday”, when the market tanked severely, with Bitcoin’s value dropping by more than 50%.
Concerning this, Ripple highlights that cryptocurrency market’s capacity to act as a safe haven in times of financial crises, which were the conditions under which the market was forged, would be tested,
...as of April 17, 2020, the S&P 500 is down 11% on the year, WTI Crude is down almost 70% YTD, Gold is up 10%, and total crypto market capitalization is up 7.3%. Given the recession and continued uncertainty about the extent of the long-term economic impact this global crisis will impose, we expect continued market volatility and a sustained test for crypto as to whether it performs as a ‘safe haven’ asset class.
This is in line with what many insiders are saying, including Binance CEO Changpeng Zhao, venture capitalist Bitcoin bull Tim Draper, Global Macro Investor (GMI) and a Bloomberg report which said that Bitcoin was “maturing.”