Q1 2024 XRP Market Report Highlights Key Crypto Market Developments

Ripple Releases Q1 2024 XRP Market Report

In their quest for transparency and regular updates, Ripple has published the Q1 2024 XRP Market Report. The report offers valuable insights into the state of the crypto market, relevant XRP Ledger and XRP-related announcements, and market developments over the previous quarter.

As an XRP holder, Ripple believes in proactive communication and transparency, urging others in the industry to build trust, foster open communication, and raise the industry bar.

Notable Q1 Market Developments

Q1 witnessed significant market developments including continued demand for BTC Spot ETFs in the US, growth of centralized and decentralized exchange volumes, key regulatory and legal updates, and technical blockchain upgrades. BTC ETFs registered total net inflows of nearly $12B with cumulative trading volumes reaching $207B in just three months. BlackRock saw net inflows of $67B across its 400-plus fund ETF range, with its iShares Bitcoin Trust (IBIT) notching roughly $13.9B.

Markets are experiencing a mini-renaissance period with key examples of this era of leverage and an uptick in demand including ETF Authorized Participants hedging their inventory on the CME, projects like Ethena amassing $2B in delta-neutral assets, and funding rates entering uncharted territory. Participants are demanding more trading infrastructure to execute their strategies.

XRP Spot Volumes Surge

XRP spot volumes (Average Daily Volumes) surged to $865M in Q1 ‘24, representing a 40% increase from Q4 ‘23. Daily average XRP derivatives open interest was $500M in Q1 ‘24 vs $460M in Q4 ‘23. Spot volumes and open interest continue to exhibit high correlation with general market activity, indicating robust XRP trading and activity across venues.

Technical Upgrades and Regulatory Developments

The industry saw several technical upgrades that helped lower barriers of entry into crypto for individuals and institutions alike. These include Coinbase’s plans to bring users fully on-chain via its wallet app and Ethereum’s Dencun upgrade which has significantly reduced gas costs for L2s. With Tier-1 asset managers stepping into the space to offer not just ETFs but other securitized products, it signals a new chapter in the road to mainstream adoption.

On the regulatory front, the SEC submitted a request for remedies against Ripple for its historic Institutional Sales of XRP. Ripple filed its opposition to the SEC’s request, arguing that the law does not allow for disgorgement where the SEC has not proven that anyone was harmed. The case is currently awaiting the Judge's determination on the final remedies.

Deep Dive into XRP Markets

XRP's price witnessed a low point in mid-February and peaked in March. Despite the price increase towards the end of Q1, the volatility levels remained elevated above 90%. Binance continued to account for a significant portion of the volume while contributions from different exchanges such as Coinbase, Bitstamp, and Upbit also made up a significant percentage of volume.

On-chain transactions increased by 108% and average cost per transaction decreased by 45% last quarter. The decrease in average cost per transaction indicates that no network congestion occurred in the quarter. For future reports, AMM volume will be included in the volume on DEX.

Ripple's XRP Holdings

Ripple reported a total XRP held by the company as 4,836,166,156 as of March 31, 2024. The total XRP subject to on-ledger escrow is 40,100,000,005.