The Q1 2021 report published by Ripple includes the sales of XRP, which is roughly 100% of the previous record in the last quarter. The data, however, shows an accumulation from market whale (people holding a large number of tokens) wallets, despite the lingering legal battle between Ripple and the United States Securities and Exchange Commission (SEC). The confidence of the advocates of XRP has grown even amid the lawsuit. Somehow, the credit is to the reports of the skeptical events around the legal case.
Ripple Set a Flying Record For the Start of 2021
As mentioned in the Q1 2021 Ripple report, the whole crypto space has a good experience. The total capitalization of the crypto market at the beginning of the year is $776 billion but increased to form an uptrend on the chart at the end of the first quarter closing at $2.5 trillion.
The sales of Ripple’s XRP have hit a record of $150 million in the first quarter of the year compared to $76 million recorded in the last quarter of 2020. This increase is about 97%, and it is commendable. The firm, however, noted that the ODL (On-Demand Liquidity) service contributed immensely to the rise. The ODL services are trans-border payment solutions without pre-fund accounts with the use of XRP.
The growth of the Ripple token was then attributed to the immense engagement of the key ODL users. The report, however, mentioned the pressing need to expand the ODL services in the APAC region with a precise focus on Southeast Asia.
From the Q1 2021 report, the quarter represents the period of token accumulation by the whales. It was reported that the number of whale wallets (which is defined as the wallets holding 10 million XRP or more) has increased to 319 from 308, while the number of wallets holding between a million to 10 million tokens also increased to 1,196 from 1,125.
Spotlight on Jay Clayton, Former SEC Chair
After filing charges against Ripple in December for selling unregistered securities for over seven years, one of the misfits in the picture is the former SEC chair’s resignation a day after, which triggered some thoughts that there were some ulterior motives to the legal case.
The strong defense of Ripple is that XRP is in the same category as the likes of BTC and Ether, which the SEC called non-securities.
However, in March 2021, Clayton was appointed as the Paid advisor of One River Digital Asset Management, which invest more in Ethereum and Bitcoin. The concern has been that are the former civil servants and politicians doing what is required of them or putting up an insidious play?