For Ripple, things are looking up: according to the third quarterly report of FinTech, the daily trading volume of XRP has increased by more than 107 percent.

San Francisco-based FinTech Ripple has published its third quarterly report for 2020. In it, the decentralised protocol records a 107 percent growth in average daily XRP trading volume compared to the previous quarter. While in Q2 it was just under 96.28 million US dollars, in Q3 it was correspondingly around 403.58 million US dollars. The network is thus recording a significant increase in usage and growing interest in the On-Demand Liquidity (ODL) payment solution offered by Ripple.

XRP total revenue up 10 percent

Total XRP sales were $35.84 million, an increase of more than 10 percent since the second quarter. Ripple explains that the company has focused exclusively on over-the-counter sales and leases as part of providing sufficient liquidity to certain ODL customers.

Ripple’s best customer: Ripple

In total, Ripple has approved three billion XRP for sale in the third quarter. Of this amount, 2.4 billion XRP have been returned to the escrow account, which is related to a decision taken in 2017.

At that time, the company committed to freeze 55 billion XRP in an escrow account and to release one billion XRP for sale each month. This decision has been criticised by the community on several occasions in the past and is therefore more often suspected as a possible reason for the average performance of XRP. However, several Ripple representatives, including Brad Garlinghouse, argue that Ripple does not or cannot influence the price of XRP.

On-demand liquidity service receives positive response

As the quarterly report continues, Ripple recently introduced a new credit product, the „Line of Credit“, which enables on-demand liquidity customers to take out loans in the form of XRP. The service is still in a beta version and is initially targeted at selected Fintechs and small and medium-sized enterprises (SMEs).

Asheesh Birla, the recently appointed General Manager (GM) of RippleNet, said in a Twitter post of 8 October that limited access to working capital was one of the main obstacles to growth for many companies. Therefore, the product is targeted in particular at Fintechs and SMEs. They would thus be able to raise capital on demand to initiate large scale cross-border payments with the digital asset XRP. So far, the response to the results of the work has been entirely positive. Therefore, Ripple plans to soon extend this service to other markets and customers, the company stated in its quarterly report.

Further launches so far promising

As BTC-ECHO reported on Thursday, Ripples CTO David Schwartz announced an additional XRP ledger feature. He calls it the „absolute gamechanger“ on Twitter. In addition, every server in the XRPL has a so-called „Unique Node List“ (UNL). It lists faulty validators and is also available when the validators are offline. In addition, the announcement of the Spark Token Airdrop for XRP owners recently attracted a lot of attention. Since September, XRP holders have been able to register their claim for the new Flare Network token using a tool for XUMM and the XRPToolkit. The final distribution of Spark Tokens will take place on 12 December. This announcement also provided positive feedback from the XRP community.

XRP is ideal for arbitrage trading

The third quarterly report also shows that XRP is ideally suited for arbitrage trading. This is due to the fast transaction times and low currency fees compared to Bitcoin Fast Profit. As a result, XRP can be sent from one exchange to another in a short time. Consequently, the small price differences can be used for short-term profits.

Using XRP as a bridge currency between exchanges, for example, allows traders to significantly reduce the time required and, more importantly, the associated volatility risk compared to other digital assets such as BTC and ETH,

says the report.