Ripple’s quarterly XRP Markets Report provides an open, detailed look into the state of the crypto market, including XRP sales, on-chain developments, regulatory shifts, and ecosystem growth. This commitment to transparency helps build trust and encourages industry-wide accountability.
The first quarter of 2023 was marked by significant turbulence in traditional finance, yet the crypto market—and XRP in particular—demonstrated notable resilience. This report breaks down key performance metrics, regulatory progress, and technical advancements within the XRP Ledger (XRPL) ecosystem.
Executive Summary
- Ripple’s net XRP sales reached $361.06 million in Q1 2023, compared to $226.31 million in the previous quarter.
- XRP Ledger on-chain transactions grew by 9%, reaching 116 million.
- Decentralized exchange (DEX) volume on XRPL increased by 34% to $115 million.
- Average daily volume (ADV) for XRP on centralized exchanges rose 46% to $1 billion.
- New regulatory frameworks advanced in the EU, UK, UAE, and other regions.
- A new interoperability proposal, XLS-38d, was introduced to enable cross-chain transactions.
Crypto Market Overview
The first quarter of 2023 witnessed considerable instability across global financial markets. Despite slowing inflation expectations, a series of banking crises—including the collapse of Silvergate, SVB, Signature Bank, and Credit Suisse—revealed systemic vulnerabilities. These events underscored the deep interconnections between traditional finance and crypto markets.
The rapid de-pegging of USDC and the loss of banking partners created immediate challenges for crypto liquidity and on-ramps. Yet, crypto assets like XRP showed strength, with trading volumes rising significantly. XRP’s spot volume increased by 46% quarter-over-quarter, outpacing many major assets.
This period also highlighted regulatory pressures in the U.S., where agencies continued a policy of enforcement-led oversight rather than formal rulemaking. In contrast, other regions pushed ahead with comprehensive crypto legislation.
Global Regulatory Developments
Multiple jurisdictions made substantial progress in establishing clearer rules for crypto assets:
- The European Union passed the Markets in Crypto-Assets (MiCA) regulation, creating a licensing system across 27 member states.
- The UK government proposed expanded regulations covering stablecoins and financial promotions.
- The UAE introduced federal virtual asset regulations, and Dubai’s VARA published activity-based rulebooks.
- Australia and Hong Kong initiated public consultations on crypto exchange regulations and token mapping.
These efforts reflect a growing global consensus on the need for balanced, innovation-friendly regulation.
In the U.S., however, regulatory actions remained confrontational. The SEC issued Wells notices to major firms, filed lawsuits alleging securities violations, and continued applying existing rules to crypto without new legislation. This approach has drawn criticism from within the agency and across the industry.
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Update on SEC vs. Ripple Case
On March 6, the court issued a key ruling excluding certain expert testimonies from the SEC. A summary judgment is expected before the end of the year, though the timing remains at the court’s discretion.
XRP Ledger On-Chain Activity
On-chain metrics for XRPL showed healthy growth in Q1 2023:
| Metric | Q1 2023 | Q4 2022 | Q3 2022 |
|---|---|---|---|
| Transactions | 116,341,516 | 106,429,153 | 103,039,261 |
| XRP Burned as Fees | 140,993 | 101,968 | 146,433 |
| Avg Fee per Tx (XRP) | 0.00121 | 0.00096 | 0.0014 |
| DEX Volume (USD) | $114,567,441 | $85,772,947 | $117,372,932 |
| New Wallets Created | 140,558 | 228,143 | 125,225 |
Transaction activity grew by 9%, while DEX volume surged 34%. The average transaction cost remained low compared to other major blockchains, reinforcing XRPL’s efficiency.
NFT minting surpassed 1.2 million since the mainnet launch of XLS-20, placing XRPL among the top 10 chains for NFT activity.
On-Demand Liquidity (ODL) Performance
Ripple’s ODL product facilitated over $3.3 billion in cross-border transactions between the U.S. and Mexico in 2022 through partner Bitso. Although the banking crisis temporarily affected liquidity sources, ODL flows quickly recovered thanks to built-in redundancy planning.
ODL continues to serve as a reliable, low-cost solution for international payments, emphasizing utility and sustainability.
XRP Sales and Market Activity
Ripple’s net XRP sales for Q1 2023 were $361.06 million, representing 0.44% of global XRP volume. All sales were related to ODL usage, supporting its growing adoption.
Ripple sources XRP from open markets to meet ODL demand, employing strategies to minimize market impact. Purchases were paused briefly during the banking crisis but have since resumed.
| Metric | Q1 2023 | Q4 2022 |
|---|---|---|
| Total ODL-Related Sales (M) | $2,930.87 | $2,964.28 |
| Total Purchases (M) | $2,569.81 | $2,737.97 |
| Net Sales (M) | $361.06 | $226.31 |
| ADV XRP (M) | $1,020.42 | $698.45 |
| Net Sales as % of Volume | 0.44% | 0.35% |
XRP’s price increased by 24% in Q1, with average daily volume rising to $1.0 billion.
Escrow Activity
As per the escrow schedule, 3 billion XRP were released—1 billion per month—of which 2.1 billion were returned to new escrow contracts.
XRP Ledger Ecosystem Growth
The XRPL community saw several key developments in Q1:
- Messari Coverage: Messari published a comprehensive protocol overview of XRPL, highlighting its transaction mechanism, DEX, and community projects.
- NFT Growth: Over 1.2 million NFTs have been minted since XLS-20 went live.
- XRPL Commons Launch: A non-profit association launched to support education and development on XRPL.
- Web DEX Launch: XRPL Labs introduced a browser-based DEX for seamless access to XRPL’s native decentralized exchange.
- Technical Proposals: New standards were proposed for interoperability (XLS-38d), cross-chain bridging, and decentralized identity (XLS-40d). Sidechain and AMM developments are nearing completion.
These advancements reflect a vibrant, expanding ecosystem centered on utility and innovation.
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Frequently Asked Questions
What are Ripple’s XRP sales used for?
Ripple’s sales are solely related to On-Demand Liquidity (ODL) transactions. The company sources XRP from open markets to support ODL growth, aiming to minimize market impact through disciplined purchasing.
How did the banking crisis affect XRP liquidity?
The collapse of several crypto-friendly banks temporarily disrupted liquidity channels. However, Ripple’s ODL infrastructure proved resilient, with customer flows recovering quickly due to redundancy measures.
What is the significance of the XLS-38d proposal?
XLS-38d introduces a cross-chain bridge standard designed to enable interoperability between XRPL and other blockchains. This will allow users to move assets across chains seamlessly, expanding XRPL’s use cases.
How does XRPL compare to other blockchains in terms of cost?
XRPL consistently offers some of the lowest transaction fees in the industry. The average cost per transaction in Q1 was $0.000484, significantly lower than many leading networks.
What is the status of the SEC lawsuit against Ripple?
The court issued an important evidence ruling in March, and a summary judgment is expected in 2023. The outcome could have broader implications for crypto regulation in the U.S.
How does escrow work for XRP?
Each month, 1 billion XRP are released from escrow. Unused portions are returned to new escrow contracts. This mechanism ensures predictable and controlled supply circulation.
Looking Ahead
Despite ongoing macroeconomic and regulatory uncertainty, the foundational strength of the XRP Ledger and its growing utility suggest continued resilience. Developments in interoperability, NFT infrastructure, and DeFi are expected to drive further adoption.
Ripple remains committed to transparency, innovation, and responsible stakeholder engagement as the ecosystem evolves.