XRP Needs More Liquidity if Ripple’s ODL Solution is to Catch on. In the second quarter of 2020, the number of XRP-based ODL transactions made up a ⅕th of all RippleNet transactions.
This reflects a significant decline in the number of ODL transactions. Garlinghouse said that the demand for the ODL solution is too high to match with the current XRP liquidity they have. So, it’s not like they don’t have customers, they just don’t have enough XRP liquidity to meet the needs of clients. He said that they have no choice but to slow down the adoption of their ODL solution. Right now, the ODL depends a lot on exchanges that settle XRP remittance, and accept fiat currencies.
In his words;
“Ripple has throttled that growth because one of the things that’s important when using ODL is you have to have really good liquidity on both sides of the transaction. And so, if XRP doesn’t have enough liquidity in the marketplace and you can’t put as much demand through.
According to Asheesh Birla, Senior Vice President of Product at Ripple, Ripple and its ODL technology is still making great strides. “Ripple continues to expand globally, bring on new customers to RippleNet, specifically ODL, and see an increase in RippleNet transactions”,
- Brad Garlinghouse Says Lack of XRP Liquidity is the Primary Factor That is Hindering ODL’s Adoption
- Garlinghouse believes that the Price of XRP Has the Potential to Surge Significantly Long-term
Ripple’s ODL solution is one of the best technologies for cross-border transactions in the world. Based on the Ripple blockchain, the on-demand liquidity service allows people to send money from country to country without pre-funding. However, the adoption of the product has been stalling for a while now.
The pace at which banks and other financial service providers are implementing this product is far less than predicted. Recently, the CEO of the company, Brad Garlinghouse, said that the ODL product is lacking adoption because they haven’t accumulated enough liquidity yet.
Garlinghouse believes that the Price of XRP Has the Potential to Surge Significantly Long-term
After talking about the ODL solution, Garlinghouse talked about the price of the XRP token. At the time of writing, the token was trading at $0.274696. It is up by 1.33% against the USD and up by 1.21% against Bitcoin BTC. The trading volume over a 24 hour period was $1,080,166,976 and the market capitalization was $12,359,913,046. The token isn’t trading at its best but Garlinghouse said that there is still hope for it.
He talked about the letter that was recently released by the US Consumer Financial Protection Bureau which included positive notes about XRP. He also noted that XRP has been green listed for corporate custody by the New York State Department of Financial Services.
Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.