Ripple (XRP)’s Q2 2024 XRP Markets Report Highlights Volatility and Regulatory Wins

Ripple
(XRP)
has
released
its
Q2
2024
XRP
Markets
Report,
providing
a
comprehensive
overview
of
market
trends,
regulatory
wins,
and
significant
industry
developments,
according
to

ripple.com.

Crypto
Markets
Summary

The
second
quarter
of
2024
saw
a
continued
focus
on
institutional
adoption,
highlighted
by
the
approval
of
ETH
spot
ETFs
in
the
US.
This
milestone,
following
the
success
of
Bitcoin
spot
ETFs,
is
seen
as
a
positive
step
toward
a
more
mature
market.
Analysts
predict
that
this
could
pave
the
way
for
other
ETFs,
such
as
Solana.

Macroeconomic
factors
like
inflation,
interest
rate
expectations,
and
unemployment
rates
influenced
market
sentiment.
Bitcoin’s
(BTC)
correlation
to
the
S&P
500
increased
to
0.4,
up
from
0.2
in
previous
quarters.
The
crypto
market
exhibited
a
“flight
to
quality,”
with
smaller
cap
tokens
experiencing
significant
drawdowns
while
top
ten
market
cap
tokens
fared
better.

Market
Volatility

The
overall
crypto
market
experienced
volatility,
with
average
daily
trading
volumes
for
BTC,
ETH,
and
XRP
falling
20%
from
Q1.
BTC’s
price
briefly
dipped
below
$60,000,
influenced
by
factors
such
as
the
BTC
halving
in
April
and
distributions
related
to
the
Mt.
Gox
legal
battle.

Regulatory
Wins

July
marked
the
one-year
anniversary
of
Ripple’s
landmark
win
against
the
SEC,
which
provided
regulatory
clarity
for
XRP,
declaring
it
not
a
security.
Ripple
is
still
awaiting
a
court
decision
on
remedies
related
to
institutional
sales
before
December
2020.
Additionally,
the
California
Court
dismissed
all
class
claims
against
Ripple
based
on
federal
and
state
laws,
except
for
one
individual
state
law
claim.

Global
Regulatory
Developments

The
2024
US
elections
are
expected
to
be
crucial
for
the
crypto
industry.
Ripple
donated
$25
million
to
Fairshake,
a
federal
super
PAC
supporting
pro-crypto
political
candidates.
This
brings
Ripple’s
total
contribution
to
$50
million.

Globally,
regulators
are
making
strides
to
become
crypto
hubs.
Hong
Kong
released
consultation
conclusions
on
a
licensing
regime
for
stablecoin
issuers,
and
the
Central
Bank
of
Brazil
announced
plans
for
a
regulatory
framework
for
token
creators
and
virtual
asset
service
providers
by
year-end.
In
the
Middle
East,
the
UAE
issued
the
Payment
Token
Services
Regulation,
and
in
Europe,
the
MiCA
regulation
came
into
force
for
stablecoins
on
June
30.

Deep
Dive:
XRP
Markets

Ripple’s
report
shows
that
XRP
exhibited
elevated
volatility
in
the
first
half
of
Q2,
with
prices
ranging
from
$0.43
to
above
$0.62.
Realized
volatility
remained
above
90%
initially
but
decreased
to
around
45%
as
the
quarter
progressed.
Binance
accounted
for
a
significant
portion
of
XRP
trading
volume,
with
Bybit
and
Upbit
also
contributing
substantially.

The
State
of
the
XRP
Ledger

Ripple
announced
that
the
XRPL
EVM
sidechain
would
use
Axelar
as
the
exclusive
bridge
for
sourcing
the
native
gas
token
(eXRP)
from
the
XRPL.
This
partnership
aims
to
enhance
interoperability
and
provide
a
secure
bridge
for
users.

Key
amendments
include
the
introduction
of
oracles
on
XRPL,
providing
reliable
data
feeds
for
smart
contracts
and
DeFi
applications.
The
Multi-Purpose
Token
(MPT)
standard,
set
to
be
released
in
Q3,
will
allow
the
creation
of
complex
token
structures
representing
various
assets
and
rights.

Archax,
a
UK-regulated
digital
asset
exchange,
broker,
and
custodian,
announced
plans
to
bring
hundreds
of
millions
of
dollars
of
tokenized
RWAs
onto
the
XRPL
over
the
coming
year.
Ripple
also
launched
a
fund
to
support
innovation
on
the
XRPL
in
Japan
and
Korea.

Ripple
USD

Ripple
plans
to
launch
a
stablecoin,
Ripple
USD,
later
this
year.
The
stablecoin
will
be
100%
backed
by
US
dollar
deposits,
short-term
US
government
treasuries,
and
other
cash
equivalents.
It
will
be
available
on
both
the
XRP
Ledger
and
Ethereum
blockchains,
with
plans
to
expand
to
additional
blockchains
and
DeFi
protocols
over
time.

On-Chain
Activity

On-chain
activity
across
major
protocols,
including
XRPL,
decreased
in
Q2
compared
to
Q1.
Transactions,
XRP
burned
for
transaction
fees,
and
volume
on
the
DEX
all
saw
declines.

Ripple’s
XRP
Holdings

Ripple
reports
its
XRP
holdings
at
the
beginning
and
end
of
each
quarter.
As
of
June
30,
2024,
Ripple
held
4.68
billion
XRP,
with
39.5
billion
XRP
subject
to
on-ledger
escrow
lockups.

Image
source:
Shutterstock