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<p>The post <a href="https://coinpedia.org/news/ripples-xrp-holdings-drop-below-45-amid-surge-in-trading-volume/">Ripple’s XRP Holdings Drop Below 45% Amid Surge In Trading Volume</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>The U.S.-based financial technology company Ripple now holds 44.9 billion XRP, with 40 billion currently in escrow, having sold over 841 million tokens in Q1 2024. A recent XRP Market report for Q1 2024 by Ripple highlights a 40% jump in trading volumes amid the<a href="https://coinpedia.org/news/ripple-vs-sec-legal-experts-question-secs-876-million-disgorgement-request-in-xrp-lawsuit/" target="_blank" rel="noreferrer noopener"> SEC and regulatory challenges.</a>&nbsp;</p> 
<p>On the other hand, the report also notes that XRP holdings dropped to 44.94 billion tokens by March 31, 2024, the first time Ripple’s holdings fell below 45% of XRP’s max supply.</p> 
<h2 class="wp-block-heading" id="h-xrp-spot-volumes-surge-40">XRP Spot Volumes Surge 40%</h2> 
<p>According to Ripple’s Q1 2024 XRP Markets report, <a href="https://ripple.com/insights/q1-2024-xrp-markets-report" target="_blank" rel="noreferrer noopener">published on May 17, 2024</a>, the company highlighted significant developments in the XRP markets and the broader crypto space.</p> 
<p>The report shows substantial growth in XRP spot trading volumes, reaching $865 million in Q1 2024, a 40% increase from Q4 2023. The average daily open interest in derivatives also increased to $500 million, up from the previous quarter’s $460 million.</p> 
<p>Financial data providers like CCData have noted that most contributions come from major exchanges such as Binance, Coinbase, Bitstamp, and Upbit, indicating strong trading activity across multiple platforms.</p> 
<h2 class="wp-block-heading" id="h-ripple-s-xrp-sales-in-q1-2024">Ripple’s XRP Sales in Q1 2024</h2> 
<p>Further into the report, Ripple disclosed that its XRP holdings dropped to 44.94 billion tokens by March 31, 2024, marking the first time the company’s holdings fell below 45% of XRP’s maximum supply.&nbsp;</p> 
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   <p lang="en" dir="ltr">The Q1 2024 XRP Markets Report is out now: <a href="https://t.co/rd2kKQMNvR">https://t.co/rd2kKQMNvR</a><br><br>Notable market developments in Q1 include:<br><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f1fa-1f1f8.png" alt="🇺🇸" class="wp-smiley" style="height: 1em; max-height: 1em;"> Continued U.S. demand for BTC Spot ETFs<br><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f4f6.png" alt="📶" class="wp-smiley" style="height: 1em; max-height: 1em;"> CEX &amp; DEX volume growth<br><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/2696.png" alt="⚖" class="wp-smiley" style="height: 1em; max-height: 1em;"> Key regulatory &amp; legal updates<br><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f517.png" alt="🔗" class="wp-smiley" style="height: 1em; max-height: 1em;"> Technical blockchain upgrades including AMM on the <a href="https://twitter.com/hashtag/XRPLedger?src=hash&amp;ref_src=twsrc%5Etfw">#XRPLedger</a></p>— Ripple (@Ripple) <a href="https://twitter.com/Ripple/status/1791564020064940082?ref_src=twsrc%5Etfw">May 17, 2024</a>
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<p>During the first quarter, Ripple sold 841.5 million XRP, equivalent to $440.6 million at the current price of $0.5236 per XRP. This represents a 16% decrease in sales compared to the previous quarter, where 1.006 billion XRP were sold.</p> 
<p>Out of Ripple’s 44.94 billion XRP holdings, 40.1 billion are in escrow, subject to monthly releases.&nbsp; As of the latest data, this escrow balance has further decreased to 39.7 billion XRP due to additional sales in April and May.&nbsp;</p> 
<p>Moreover, <a href="https://coinpedia.org/news/ripple-news-will-xrp-hit-an-all-time-high-this-bull-rally/" target="_blank" rel="noreferrer noopener">ripple’s spendable</a> balance stands at 4.84 billion XRP, down by 237 million from the previous quarter.</p> 
<h2 class="wp-block-heading" id="h-ripple-s-continuous-xrp-sales">Ripple’s Continuous XRP Sales</h2> 
<p>Ripple’s ongoing XRP sales have raised concerns among some market participants about the potential impact on XRP’s performance. However, Ripple CTO David <a href="https://x.com/JoelKatz/status/1781553863138628032" target="_blank" rel="noreferrer noopener">Schwartz has clarified</a> these concerns, highlighting that XRP’s inflation rate is lower than other cryptocurrencies like Solana, which have performed well.</p> 
<p>Schwartz explained that Ripple needs to reduce its XRP holdings significantly and that options like burning tokens would not positively impact the price, referencing the Stellar example.</p> 
<p>Despite these challenges, <a href="https://markets.coinpedia.org/xrp/" target="_blank" rel="noreferrer noopener">XRP’s price</a> remains bullish. After testing support at an intra-day low of $0.514, XRP rose to $0.52, reflecting a 1.195% increase.&nbsp;</p> 
<p>Also Check Out : <a href="https://coinpedia.org/news/ripple-vs-sec-ripples-confidential-data-at-stake-what-to-expect-on-may-20th-hearing/">Ripple vs. SEC: Ripple’s Confidential Data at Stake, What To Expect on May 20th Hearing</a></p>

Ripple’s XRP Holdings Drop Below 45% Amid Surge In Trading Volume

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