XRP’s Third Quarter Inflation Rate Was Lower Than Ethereum (ETH) and Litecoin (LTC)
In the report, Ripple revealed that it ended up selling far fewer XRP in the quarter than was previously anticipated. According to the company, XRP sales were $66.24 million vs. $251.51 million in the previous quarter, representing a 73.7% decrease quarter over quarter. Additionally, 3 billion XRP were released out of escrow while 2.3 billion were returned during the period.
While Ripple planned to have a third-quarter programmatic sales rate of 10 basis points of its volume benchmark, the sales ended up being 8.8 basis points as it decided to focus more heavily on over-the-counter sales to strategic partners. This resulted in a total of 36 bps of the volume benchmark, and a lower inflation rate than both Ethereum (ETH) and Litecoin (LTC) during the quarter.
This information will likely come as a relief to many XRP investors, who frequently monitor sites like Whale Alerts to view the various XRP sales and movements in and out of Ripple’s escrow. While Ripple continues to issue new XRP, the rate at which it is doing so appears to be decreasing as the company is perhaps being more strategic with its distributions.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.