• Ripple Labs Inc published its Q4 2022 XRP Markets Report, detailing the trend in the digital currency ecosystem.
• The report showed that sales of XRP coin, net of purchases, came in at $226.31 million in the fourth quarter as opposed to $310.68 million recorded in the previous quarter.
• Ripple launched EVM sidechain on Devnet to put DeFi applications like Uniswap on XRPL.
Ripple’s Q4 2022 XRP Market Report
Ripple Labs Inc has released its Q4 2022 XRP Markets Report providing an overview of the trend in the broader digital currency space. The report highlighted a number of significant milestones such as the launch of On-Demand Liquidity (ODL) and XLS-20 going live on Mainnet, as well as EVM sidechain on Devnet.
XRP Sales Slowed Down
The report revealed that Ripple’s sales of XRP coin, net of purchases, came in at $226.31 million in Q4 compared to $310.68 million recorded in Q3. This decrease was attributed to the negative outlook caused by FTX Derivatives Exchange collapse resulting in investors moving their funds away from centralized exchanges and opting for safer custody measures instead.
Regulatory Actions
The report also noted that there has been a ramp up in regulatory actions which have led market participants to reduce balances posted to exchanges, increase withdrawal frequency and shorten horizons for most trading strategies leading to heavy drag on liquidity coupled with volatile prices across markets.
Consolidation Phase
Ripple believes that the industry is now entering into a consolidation phase which will be favorable for its goals as a major builder in this space. As part of this effort, it launched EVM sidechain compatibility with Devnet allowing DeFi applications like Uniswap and Aave to run on XRPL network enabling users access services like decentralized finance products while maintaining full control over their assets and data privacy within one platform.
Conclusion
In conclusion, Ripple’s Q4 2022 market report shows that sales of XRP decreased due largely to negative outlook fueled by FTX Derivatives Exchange collapse resulting traders moving their funds away from centralized exchanges towards more secure options while regulatory actions have also increased leading investors taking more precautionary steps when trading cryptoassets across markets leading heavy drag on liquidity coupled with volatile prices across markets but Ripple still remains optimistic about future prospects for builders as industry enters into consolidation phase offering opportunities for growth through launching services like EVM sidechain compatibility enabling DeFi applications running on its platform offering users access products while maintaining control over assets and data privacy within one platform .