Ripple’s largest payment corridors the Liquidity Index Bot reported a sharp decline in XRP liquidity and the reason for the drop is still unknown. A fall in XRP price doesn’t seem to be the only factor, as we are reading more in the upcoming Ripple XRP price news.
At the start of June, the reports showed that the XRP liquidity on all payment corridors around the world gained strong momentum. Both Australian and European as well as Mexican and Philippine payment corridors approached their all-time highs. The CEO of Ripple Brad Garlinghouse in a YouTube live stream under the motto “Q1 2020 Virtual All-Hands Meeting”, emphasized the achievements with regard to the XRP based payment solution and the On-Demand liquidity and the increasing demand.
As Garlinghouse explained, the company succeeded in signing 28 new production contracts for the On-demand Liquidity back in Q1 of 2020 but the momentum is not really visible on Ripple’s largest payment corridor. Coins.ph’s XRP/PHP liquidity yesterday showed an index of around 3 million which is 12 times lower than the all-time high of 37.5 million reached the start of June. Even the numbers back in January were twice as high as they are now. The other corridors such as the Australian payment corridor XRP/AUD doesn’t look better as well.
The liquidity value for the XRP/AUD pair dropped to under 1.5 million and it is also 10 times lower than the all-time high of around 16 million reached back in June. The volume for the Philippines and the XRP/PHP corridor looks even worse. It was once the most active corridor at 1.1 million in June and now it fell below that. The value of the asset also dropped because of Black Thursday and it is now a tenth of the former all-time high of 11.5 million reached in April. The drop is less dramatic for the XRP/EUR corridor at about 7 to 8 million and the volume is above the level in February.
All charts show that the crash started during the first week of June. One can only speculate about the causes and because of the Liquidity Index, the data includes ODL transactions and normal XRP investment as well. This way the sharp decline will be related to the fall of the XRP price which started at the same time. Whether this is the only reason for the drop in liquidity, it remains questionable. There have been no reports from Ripple that could explain the drop but the speculation of some users that “something else is going on” are only rumors.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]