A detailed report about XRP’s performance in the second quarter was released on Tuesday by the Ripple Labs Inc. The Q2 2018 Markets Report disclosed the steep decline in the Ripple sales as compared to the magnitude recorded in the first quarter.
The company sold $167.7 million worth of XRP tokens during the first three months but sales of $75.53 million was recorded in Q2; pointing out a decrease of 54.96%. Moreover, decrease in the overall trading volume has also been reported, specifically when set side by side with the last quarter of 2017 and first quarter of 2018.
The sales breakdown is as follows: $56.66 million through programmatic XRP sales, which fell down from $151.10 million by 62.5%, $16.87 million via direct sales executed by XRP II, a Ripple subsidiary.
The drop in the sales and the trading volume is, however, the repercussions of the prolonged bearish conditions of crypto markets. It was also observed in the report that all the major digital currencies in the market showed decrease in prices and trade volumes. It is worth noting that Ripple’s 9% price decline was close to Bitcoin’s 8.5% fall, establishing that almost all of the digital currencies felt the pinch of bears.
In addition, it stated, “The tight correlation is indicative of a market that is still in its infancy. Traders have yet to distinguish among the intrinsic values of the best known digital assets. As the industry matures and decides what it deems most useful and valuable, we should expect to see more separation.”
The report also brought into notice the deposit of 2.7 billion XRP tokens into an escrow account. In the fourth quarter of 2017, the number of tokens placed in the escrow account was 55 billion, which makes a mere 13% of the total Ripple in circulation, available to the company.
Ripple was also quoted as stating that this was the best period in the second quarter as an overwhelming amount of customers signed up for the currency. It is definitely a reason to be optimistic as despite the dive in sales, the customer base is expanding. Report read, “It’s also important to note that despite Ripple having its best quarter ever in Q2 — in terms of customers signed — XRP’s price continued to decline with those of other digital assets, underscoring XRP’s independence from Ripple.”