š Q1 2024 XRP Markets Report š
Ripple publishes the quarterly XRP Markets Report to voluntarily provide transparency and regular updates on the companyās views on the state of crypto markets, 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, and urges others in the industry to build trust, foster open communication, and raise the bar industry-wide.
Crypto Markets Summary
There was no shortage of notable market developments in Q1, including continued demand for BTC Spot ETFs in the US, centralized and decentralized exchange volume growth, 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, and its iShares Bitcoin Trust (IBIT) notched roughly $13.9B. Given the continued volume and inflows, itās clear that traditional institutional investors saw large asset managers as an entryway to access the crypto market.
While crypto traders have previously utilized leverage to gain directional exposure, markets are undergoing a mini-renaissance period. Key examples of this era of leverage and an uptick in demand include ETF Authorized Participants hedging their inventory on the CME, projects like Ethena amassing $2B in delta-neutral assets, and funding rates entering never-before-seen territory. As a result, participants like these are demanding more trading infrastructure to execute their strategies. In addition, as prime brokers, settlement networks and tri-party solutions become second-nature in the market, the velocity of trusted assets will likely only increase, helping the market to continue to mature and grow.
Total centralized exchange volume in March surged to levels not seen since May 2021 highs. Spot volumes jumped to $2.93T in March, while derivatives volumes jumped to $9.1T per CCData. Decentralized exchange weekly volumes also spiked to $40B, a 100% increase over Q4 ā23.
XRP spot volumes (Average Daily Volumes) surged to $865M in Q1 ā24, representing a 40% increase from Q4 ā23. Daily average XRP derivatives open interest was $500M in Q1 ā24 vs $460M in Q4 ā23. Spot volumes and open interest have continued to exhibit high correlation with general market activity pointing towards robust XRP trading and activity across venues.
Lastly, the industry saw several technical upgrades that helped lower barriers of entry for individuals and institutions alike into crypto including Coinbaseās plans to bring users fully on-chain via its wallet app and Ethereumās Dencun upgrade, which has dramatically reduced gas costs for L2s. These upgrades, combined with Tier-1 asset managers stepping into the space to not just offer ETFs but other securitized products, all point to a new chapter in the road to mainstream adoption.
Read on:
https://ripple.com/insights/q1-2024-xrp-markets-report