The Q3 2018 XRP Markets Report has been released, and it contains some very interesting financial data. Most notably, the report revealed that Ripple sold $163.33 million XRP in Q3, which means that the company more than doubled its sales of XRP from Q2 to Q3 of 2018.
Data in the report also shows that the majority of sales came from institutional direct sales. The fact that institutional investors are acquiring XRP tokens has caused many XRP holders to expect a token price rise in 2019.
The XRP Lockup
In Q4 2017, Ripple locked 55 billion XRP into an escrow account. This lockup was created to give the company larger control of XRP supply at any given time. Due to that lockup, Ripple has access to only 13 percent of the total XRP in circulation. In Q3 2018, 3 billion XRP was released out of escrow (1 billion each month). Then 2.6 billion XRP was subsequently put into new escrow contracts. The 400 million XRP not returned to escrow is being used in a variety of ways to help support the XRP ecosystem.
The report also commented on the current state of the cryptocurrency market as a whole. With the bear market not slowing down, the total market capitalization (MC) declined a further 12% in the third quarter, with most major assets declining together in a similar downtrend. In late Q3, Coil began testing its web monetization product, with over 200 websites enabling XRP payments. This positive news caused waves within the crypto community. This helped spark growing interest in XRP and causing the price to rally to previous highs before the latest sell-off.
South Korea, Malta Emerge As Top Crypto Trading Hubs
Briefly mentioned was the fact that South Korean exchanges have recently emerged as one of the leading cryptocurrency trading venues. A special mention was also given to the country of Malta, who led on overall global trading volume for more than two-thirds of the quarter.
The report highlighted the struggling ICO market, with 55% of initial coin offerings failing to complete their crowdfunding goal. However, this data comes as no surprise, considering we’re at the tail end of a near year-long bear market. In addition, U.S. regulators took action throughout the quarter in an effort to support a healthy market.
Notably, the report mentioned that “traditional Wall Street firms are waiting in the wings” – institutional firms continue moving towards providing support to cryptocurrency trading, but are yet to launch offerings into the market.
Article By: Timothy Atkins