Crypto analytics company Flipside has published a new XRP cash flow statement and the general finding is that there is not much real use of the digital asset by ordinary users.
Flipside noticed that most of the XRP flow takes place exclusively between exchanges and top asset owners, which we could call “whales.” Most of the rest is a flow between the company’s escrow account, the founders’ portfolio and the stock exchanges.
The report also finds that flows generally decrease significantly over the weekend. Comparing this trend with other high-volume digital assets such as OAN and Zilliqa (ZIL), Flipside identified this as further evidence that the main use of XRP is for trading and stock market speculation.
The report states
The fact that these users only trade on exchanges suggests that most people who use XRP are market producers or speculators, not real consumers.
Referring to the recent revelation that Ripple Labs co-founder Jed McCaleb has started selling XRPs en masse, Flipside found that the trend continues with the use of a separate portfolio owned by McCaleb. This portfolio uses XRP’s built-in decentralized exchange (DEX) to trade for USD and then liquidates this USD transfer via Bitstamp.
It was recently reported that the so-called “XRP army” seems to be losing its online presence, with a sharp drop in the asset’s mention on Twitter – a sharp drop from that seen with other cryptocurrencies such as Bitcoin and Ethereum .
( XRP graphics from TradingView )
Comparing the price movement of XRP with that of Bitcoin, we can safely say that Ripple’s digital asset is ‘collapsing’ against the flagship cryptocurrency