The downturn that has tormented the crypto markets of late has left a trail of perished ventures in its trail, alongside billions in investor losses due to sharp declines in asset prices. Although Ripple Labs has managed to scale through the second quarter of the year regardless of its battle with SEC and the Crypto Winter, the firm recorded a discouraging decline of 22% in XRP’s Average Daily Volume (ADV).
XRP ADV dropped to $862M from $1.1B last quarter
According to the Q2 2022 XRP Markets Report published by Ripple, the ADV of XRP sank to $862M at the close of Q2 2022 – a 22% drop from the $1.1B in ADV recorded the previous quarter. The firm cited recent unfavourable macroeconomic conditions, and the persistent troubling state of the crypto markets as reasons for this low performance.
The firm highlighted the issues besetting the crypto space at the initial point of the report. In Q2 2022, the crypto markets lost another $1T in market cap due to the Crypto Winter. Ending the previous year at a market cap of approximately $2.3T, the crypto space is currently seeing a market cap of $1.1T as at time of writing, after shaking off a large portion overtime.
XRP recorded a 9x value of ODL volume in 1 year
Furthermore, on the plus side, XRP expanded its interoperability with the launch of onAVAX.com – a cross-chain initiative which aims to merge the Avalanche and XRPL native assets which will help bridge both assets. “This allows XRPL asset holders to bridge onto the EVM-compatible AVAX chain and set their XRPL assets to work within onAVAX’s varied DeFi applications,” the report says.
Also, in the report, Ripple noted a nine times increase in On-Demand Liquidity volume from last year. “Customers continued to expand the use of ODL for use cases beyond traditional remittances or individual payments, with treasury flows and bulk payments,” the report says, noting that this influenced the surge in volume.
XRP has not been spared by the persistent Crypto Winter. The asset is currently trading at $0.37 as at press time – a 56% drop from the $0.84 value the asset started the year with. However, XRP has joined in the recent rallies staged by the markets, having gained by 3.79% in the past 24H.