Ripple Releases Q1 2024 XRP Markets Report

Ripple,
the
blockchain-based
payment
protocol
and
cryptocurrency
creator,
has
released
its
Q1
2024
XRP
Markets
Report,
providing
insights
into
the
state
of
crypto
markets,
relevant
XRP
Ledger
and
XRP-related
announcements,
as
well
as
market
developments
during
the
previous
quarter.
The
report
represents
Ripple’s
commitment
to
transparency
and
regular
updates,
demonstrating
its
belief
in
proactive
communication
and
industry-wide
trust-building.

Crypto
Markets
Summary

According
to
Ripple,
there
was
a
significant
number
of
notable
market
developments
in
Q1
2024,
including
the
continued
demand
for
BTC
Spot
ETFs
in
the
US,
growth
in
centralized
and
decentralized
exchange
volumes,
key
regulatory
and
legal
updates,
and
technical
blockchain
upgrades.
The
traditional
institutional
investors
have
recognized
large
asset
managers
as
an
entryway
to
the
crypto
market,
as
indicated
by
the
continued
volume
and
inflows.

Crypto
traders
have
previously
utilized
leverage
to
gain
exposure,
however,
markets
are
experiencing
a
mini-renaissance
period.
Key
examples
include
ETF
Authorized
Participants
hedging
their
inventory
on
the
CME,
projects
like
Ethena
amassing
$2B
in
delta-neutral
assets,
and
funding
rates
entering
unprecedented
territory.
Consequently,
more
trading
infrastructure
is
demanded
by
participants
like
these.
As
prime
brokers,
settlement
networks,
and
tri-party
solutions
become
more
common
in
the
market,
the
velocity
of
trusted
assets
will
likely
increase,
supporting
the
market’s
continued
maturation
and
growth.

Global
Regulatory
Developments

Stablecoin
regulation
was
a
prominent
topic
as
EU
regulators
published
draft
regulatory
standards
under
Europe’s
Markets
in
Crypto-Asset
Regulation
(MiCA)
for
stablecoin
issuers.
Additionally,
Hong
Kong
introduced
a
regulatory
sandbox
for
stablecoin
issuers
this
year
and
the
BIS
issued
regulatory
recommendations
for
global
stablecoin
arrangements.
In
the
U.S.,
Senators
Gillibrand
and
Lummis
introduced
a
new
stablecoin
bill,
aimed
at
establishing
a
regulatory
framework
for
payment
stablecoins.

The
Virtual
Asset
Regulatory
Authority
in
Dubai
granted
a
conditional
virtual
asset
provider
(VASP)
license
to
Deribit,
the
Monetary
Authority
of
Singapore
(MAS)
granted
in-principle
approval
for
its
payment
license
to
OKX,
and
South
Africa’s
financial
regulator
announced
over
300
crypto
asset
providers
sought
approvals
for
a
license
in
the
country.
The
SEC
reportedly
also
sent
Wells
Notices
to
Uniswap
and
Robinhood,
while
the
DOJ
charged
KuCoin
and
its
founders
with
violating
anti-money
laundering
laws.

Deep
Dive:
XRP
Markets

XRP
spot
volumes
(Average
Daily
Volumes)
surged
to
$865M
in
Q1
‘24,
a
40%
increase
from
Q4
‘23.
Daily
average
XRP
derivatives
open
interest
was
$500M
in
Q1
‘24
vs
$460M
in
Q4
‘23.
Spot
volumes
and
open
interest
have
continued
to
show
a
high
correlation
with
general
market
activity,
indicating
robust
XRP
trading
and
activity
across
venues.

The
industry
also
saw
several
technical
upgrades
that
lowered
the
barriers
of
entry
for
individuals
and
institutions
into
crypto.
These
upgrades,
combined
with
Tier-1
asset
managers
entering
the
space
to
offer
not
only
ETFs
but
other
securitized
products,
point
to
a
new
chapter
in
the
road
to
mainstream
adoption.

On
the
XRP
Ledger,
XLS-30
went
live
adding
a
non-custodial
automated
market
maker
(AMM)
as
a
native
feature
to
the
XRPL’s
decentralized
exchange
(DEX).
This
new
feature
was
designed
to
provide
on-chain
liquidity
and
trading
capabilities
for
DeFi
developers
and
users.

Ripple’s
XRP
Holdings

Ripple
reported
its
XRP
holdings
at
the
beginning
and
end
of
the
quarter.
Its
holdings
fall
into
two
categories:
XRP
currently
available
in
its
wallets,
and
XRP
subject
to
on-ledger
escrow
lockups
released
to
Ripple
on
a
monthly
basis.
The
majority
of
the
XRP
released
is
put
back
into
escrow
each
month.

Image
source:
Shutterstock

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