In a recent episode of Ripple Drop, Ripple's Chief Market Strategist Cory Johnson talked about XRP's performance in the second quarter and Ripple's position in the XRP market. He also talked about market volatility, along with the specifics of institutional use with xRapid.
Johnson talked about the general performance of the XRP token during his statement, while providing a perspective on the amount of Ripple's participation in XRP trading. He said:
"The biggest takeaway is that Ripple sold $ 74 million of XRP during the quarter which, as you pointed out, is not very obvious when the asset traded around $ 500 million a year. The fact that we sold 75 million over 91 days shows exactly how active we were in the market, that is, we are there but in a very small way. "
Also, he talked about the reduced volatility that the XRP token observed in the course second quarter. He stated that it was the lowest volatility observed in "years and years". He commented:
"The second quarter showed us the lowest volatility in the XRP business we have seen in years and years – a lack of volatility to find the market in the second quarter."
He also talked about the reduction of speculation on the market, along with the 9% decline similar to the decline in the price of Bitcoin. In addition, Johnson said that the similarities in the decline in values indicate reduced speculation on the market. He continued:
"The price of XRP and Bitcoin has decreased by a similar amount during the shows of the quarter, I think, [that] there is less speculation on the market and this has certainly led to lower volatility."
Many doubt that the volatility of XRP can cause problems for financial institutions that will use it in the future through xRapid. Asked if the reduced volatility would affect this use, Johnson stated that it does not "matter a bit".
He also explained, his reason for saying it is reducing the time required by institutions to keep XRP. This is similar to a statement issued by Brad Garlinghouse, CEO of Ripple, in which he stated that the volatility of a 2 or 3-day fiat is comparable to the volatility of keeping XRP for a few minutes or even seconds. Johnson said:
"Using our xRapid product, you're XRP long, but you only have a minute or maybe a second, so exposure to volatility, while overall volatility could be great if you're talking about five days. you're only for less than a minute, so the actual volatile exposure is de minimis. "
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