The latest report reveals that Ripple has been a major buyer of XRP in the secondary markets. The company expects to continue to undertake even higher XRP purchases as its On-Demand Liquidity (ODL) service continues to gain global prominence.
The XRP lawsuit filed against the cross–border payment firm Ripple in late 2020 by the United States Securities and Exchange Commission (SEC) greatly thwarted the price growth of XRP.
How do we know this? This lawsuit, which has now lasted for more than two years, made many investors naturally lose interest in the coin as they perceived it to be a risky investment option. More so, it compelled several centralized cryptocurrency exchanges – particularly those based in the United States – to delist XRP, hampering the asset’s exposure.
The largest U.S.–based crypto trading platform Coinbase and Newton were among those to delist XRP. While the Canada–headquartered exchange later relisted XRP in November 2022, Coinbase has remained adamant. But the XRP community and other entities like LBRY continue to mount pressure on Brian Armstrong’s exchange.
Interestingly, there has been a rising investor interest in the sixth-largest crypto by market capitalization as the XRP lawsuit is close to being rounded off, according to Ripple CEO Brad Garlinghouse. Additionally, some recent developments in the biggest legal tussle of the century have been in the favor of Ripple, signaling that the judge’s anticipated final ruling could exonerate XRP of the securities claims from the SEC.
Ripple’s XRP Buying Spree
To maintain a healthy market state for XRP as well as prevent its price from crashing outrageously, the San Francisco-based crypto solutions company engaged in hefty XRP purchases since the SEC lawsuit began.
Notably, Ripple has bought XRP tokens worth about $8.4 billion from secondary markets since December 2020 in a bid to mitigate the impact of the SEC’s attack on the XRP Ledger digital token. This amount represents nearly 75% of the revenue generated by Ripple from the sale of XRP on the company’s On-Demand Liquidity (ODL) network.
Ripple’s most recent report shows that the total XRP sales by Ripple, and net purchases, were $226.31 million and $310.68 million respectively in the last quarter of 2022. But from early 2021 to late 2022, Ripple accounted for $11.1 billion in ODL-related sales.
Follow us on Twitter, Facebook, Telegram, and Google News
