Approximately $18 billion worth of transactions were processed through Ripple’s On-demand-Liquidity in 2022, making up for 60% of the nearly $30 billion in volume transacted on the network since RippleNet was launched.
The US-based blockchain firm revealed this information in its “Q4 2022 Markets Report” shared this week. As per the report, the firm reduced its total XRP sales and purchases in Q4 to $226.31M from $310.68M in the previous quarter. However, it is essential to note that Ripple only sells XRP in connection with ODL transactions.
On-Demand Liquidity, a flagship crypto-powered payment solution for Ripple, was introduced in 2018, allowing customers to transfer money globally without establishing correspondent banking partnerships or pre-fund foreign accounts. The XRP token facilitates cross-border payments and eliminates the need for intermediaries.
By tapping into Ripple’s on-demand liquidity, customers can quickly and securely settle payments in local currency at the payment destination. Transactions are completed in a matter of seconds, making it an efficient way to send money.
Last year’s surge in ODL volumes has been attributed to Ripple’s ongoing focus on the utility of crypto and the expansion of its ODL products as customer demand for seamless payment solutions soars. Ripple’s ODL is accessible in almost 40 payout markets, a massive increase from just three markets in 2020. Last quarter, ODL was launched in France, Sweden and Africa through partnerships with premier payments gateway platforms in those regions. Moreover, Ripple also extended its customer base to include businesses seeking the advantages of crypto-powered cross-border payments.
Notably, the growth in the use of Ripple on-demand liquidity (ODL) comes despite a prolonged crypto winter that has XRP plunge by roughly 89% since tapping an all-time high of $3.84 in April 2021, with about 65% of that decline happening in 2022 alone.
XRP’s price has also suffered on the back of the ongoing securities legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple. Nevertheless, with the case now fully briefed, the community have been expecting a favourable ruling before year-end, accumulating the asset in record numbers and helping keep its market cap buoyed in the sixth position.
At press time, XRP was trading at $0.41 after a 3.35% increase in the past 24 hours, as per CoinMarketCap data.