In a recent episode of the Ripple Drop, Cory Johnson, the Chief Market Strategist for Ripple, spoke about the performance of XRP in the second quarter and the position of Ripple in the XRP market. He also spoke about volatility in the market, along with the specifics of institutional use with xRapid.
Johnson spoke about the general performance of the XRP token during his statement, while providing a perspective on the amount of participation Ripple has in the trading of XRP. He stated:
“The biggest takeaway is Ripple sold 74 million dollars worth of XRP during the quarter which as you pointed out is not a lot given to that when the asset traded about 500 million dollars every day. The fact we sold 75 million over the course in 91 days sort of shows exactly how active we were in the market which is to say we’re there but in a very small way.”
Moreover, he spoke about the reduced volatility that the XRP token observed over the course of the second quarter. He stated that it was the lowest volatility they had observed in “years and years”. He commented:
“The second quarter showed us the lowest volatility in the trade of XRP that we have seen in years and years. a lack of volatility to find the market in the second quarter.”
He also spoke about the reduction of speculation in the market, along with the 9% decline that was similar to the decline in the price of Bitcoin. Furthermore, Johnson stated that the similarities in the drop in values indicate reduced speculation in the market. He went on to say:
“The price of XRP and Bitcoin falling a similar amount during the quarter shows, I think, [that] there’s less speculation in the market and that certainly led to less volatility.”
Many have doubted whether the volatility of XRP will cause problems for the financial institutions that will use it in the future through xRapid. When asked whether the reduced volatility would affect this usage, Johnson stated that it does not “matter one bit”.
He further explained, his reason for saying so as the reduced amount of time that the institutions are required to hold XRP. This is similar to a statement given by Brad Garlinghouse, the CEO of Ripple, where he stated that the volatility of holding fiat over 2 or 3 days is comparable to the volatility of holding XRP for a few minutes or even seconds. Johnson stated:
“Using our xRapid product, you’re long XRP, but you’re only long for a minute maybe seconds. So the exposure to volatility while the overall volatility might be great if you’re look talking about five days you’re only in the for less than a minute so the actual volatile exposure is de minimis.”
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