XRP Liquidity Index Surges To New All-Time Highs for Mexican Bitso Exchange
According to data provided by the Liquidity Index Bot, data for Bitso and the trading pair XRP/MXN has reached a new all-time high liquidity of 7,814,746 XRP on December 11. This is a trend that has been growing and expanding throughout the year and that could continue in the future.
Liquidity Index For Bitso Surges To New All-Time Highs
Liquidity continues to grow for one of the most important exchanges for the Ripple network and that is helping the On-Demand Liquidity (ODL) service to grow. This product developed by Ripple aims at helping companies and financial organizations to send and receive across borders.
— Liquidity Index Bot (@LiquidityB) December 12, 2019
If a company wants to send money to Mexico, they will purchase with local currency XRP at an exchange, send the funds to Bitso and receive MXN immediately after. This is going to reduce the funds that must stay in nostro and vostro accounts and that large financial institutions are currently using to fund their transfers.
XRP is a fast and easy-to-use cryptocurrency that has very low fees and that Ripple is promoting among financial institutions to send and receive funds. In the future, Ripple would like to reach several trillions of dollars in liquidity for the XRP market, which is going to take some time before it is possible to do so.
At the same time, large transactions are usually reported by Whale Alert, a recognized Twitter Bot that provides information about meaningful blockchain transactions made. On December 12, a transaction of almost 150 million XRP was performed for a value of $32.56 million. The owner and the receiver of the funds remain unknown.
Ripple is also making large transactions on a quarterly basis in order to move funds from their escrow wallet. They usually move around 1 billion XRP, which is currently worth around $221 million. Ripple uses these funds in order to funds its operations and expand XRP usability around the world.
In the last years, Ripple was able to create a network of companies that reached over 300 partners and that could continue to grow in the future. This would help XRP increase its liquidity and reduce transaction costs across borders.
A few days ago, we reported at UseTheBitcoin that Binance may become an ODL exchange and help increase XRP liquidity for transactions with the Russian ruble (RUB).