Cryptocurrency start-up Ripple is trying to make a good fist of what some consider as disappointing second quarter results.
Ripple XRP has published a markets report for the second quarter of 2018, when the token accounted for 0.125% of global cryptocurrency volume.
The results show a sharp drop in the value and volume of XRP sold in the period – down 55% from $1667.7 million for the world’s third largest cryptocurrency in the first three months of 2018 to $73.5 million.
However, the company said the results were in line with the dip in price of other cryptocurrencies and the general market during in the same period, and were not unexpected.
“The total market capitalization of all digital assets started the year at $603.7 billion but by mid-year — despite the issuance of hundreds of new ICO “coins” — had declined to $254.7 billion,” said the report.
Ongoing regulatory concern
“During Q2, the XRP market also slowed considerably, compared to the prices and volumes we saw in Q4 2017 and Q1 2018.
“This slowing could be attributed to the ongoing concern around regulation, both in the U.S. and around the globe. Despite the SEC announcing in June that they don’t consider ether a security, there wasn’t a meaningful and sustained bump in volume or price of any digital asset, including XRP.”
The company is clear that executives still consider this the best quarter ever for the cryptocurrency.
“The decline in both volume and price was consistent across the majority of digital assets, as many moved with tight correlation,” said the report.
Market in infancy
“The tight correlation is indicative of a market that is still in its infancy. Traders have yet to distinguish among the intrinsic values of the best known digital assets. As the industry matures and decides what it deems most useful and valuable, we should expect to see more separation.”
The company also commented that the results ‘underscored success’ of XRP independently from Ripple.
Ripple is the name of the payment system promoted by the company using the token XRP, which ‘lives’ on the Ripple blockchain network.
Ripple XRP currently has a market capitalisation of $17.44 billion, while XRP is trading at $0.4553.