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Bettergoham

Ripple ODL Strategy

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Good Morning Everyone, 

If you have been on this forum for more than a few months you know by now that ODL usage seems to be rising at a rapid pace.  So far today, $9.34M has already been sent through ODL and we are clearly on pace to set a new daily ATH.  As with most trials/expirements the strategy would be to start slow and ramp up as they validate that accuracy, speed, and cost savings are delivered by the technology.

What other insights have any of you out their gathered from the timing, size, and corridors of these ODL transactions?  Is there a specific reasoning we are most recently seeing $100K transactions going through ODL?  Any insights to spur conversation around growth of ODL, potential strategies, and possible limitations would be greatly appreciated by myself and the forum I am sure.

769123721_ODLScan.thumb.JPG.ea1c89f30694c0ce8fc37a66ab6e1268.JPG

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My observation across all pairings over the last month or so is there a clear limit to transaction sizes as they are "allowed" to slowly ramp up (not sure who is dictating this though, the exchanges, Ripple, some other body)

<500, 5K, 10K, 30K, 50K, and just now 100K for USD-MXN as the most liquid corridor.

I'm assuming this is to allow liquidity to build across the pairing, so a single large transaction doesn't clear out the order books on an exchange spiking prices (or in effect stopping the transfer as there isn't enough local fiat on the receiving exchange to allow the transaction to complete).

Don't forget that every transaction needs someone on the receiving end to "buy" the XRP that has just been sent in fiat (eg Mexican pesos).

Things are moving quickly though - the USD>MXN pair was doing $4.5M a day at the end of Jan 2020. 2 weeks later and it's nearly double that.

As more transactions are done on more corridors total volume is going to ramp up quickly (exponentially).

Here's a snapshot from 29/01/2020:

The USD-PHP and AUD-USD have basically gone $500K to $2M a day in 2 weeks, and AUD-PHP has gone $250K to $1M a day.

I reckon by mid year we'll be seeing $20-30M a day easily.

image.png.cac1b648055c4c293f040a224648ccef.png

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I think if we were to say 100% we would be lying to ourselves, however, with the XRPL being completely visible the creators of this scanner put some rules in place to be as accurate as possible.

Criteria.jpg

Edited by Bettergoham

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29 minutes ago, Kiwi said:

How certain are we that these volumes are ODL? Are people 100% sure in this numbers? If thats the case, seeing this is encouraging

The trades are opaque.

But do you really think the general Mexican market has been buying 1+ million XRP per hour for the last 17, and just now bought 4 million XRP with MXN in one hour ?

o.O 

Edited by JASCoder

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39 minutes ago, Julian_Williams said:

4.5 million in an hour might be enough to effect price?  Interesting that this coincides with a strong positive wick taking us over .30, but we were rejected hard.

What's crazy too, is that Bitso's price action didn't even nudge the needle !

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6 minutes ago, JASCoder said:

What's crazy too, is that Bitso's price action didn't even nudge the needle !

That would suggest there's more than enough liquidity around to support these volumes.. Price will only be affected once one side of the order book gets depleted.

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43 minutes ago, richxrp said:

That would suggest there's more than enough liquidity around to support these volumes.. Price will only be affected once one side of the order book gets depleted.

Yes, they have been fine-tuning this ODL beast, and harmonizing with the Market Makers and their invisible off the books reserve pools.

Truly, where this chit is going mon, will shock the World. 

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just hitting the 100 million on one corridor?

Today value already 14 million dollars and the rise looks pretty steep, every week posts a bigger hump. Highest last week was just under 11 million. 

Growth of usage is phenomenal, how the investment community seriously ignore this?

https://utility-scan.com/#/dashboard

Screenshot_2020-02-19 RealTime XRP On Demand Liquidity Tracker - ODL Tracking.png

 

Edited by Julian_Williams

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3 minutes ago, Julian_Williams said:

just hitting the 100 million on one corridor?

Today value already 14 million dollars and the rise looks pretty steep, every week posts a bigger hump. Highest last week was just under 11 million. 

Growth of usage is phenomenal, how the investment community seriously ignore this?

https://utility-scan.com/#/dashboard

Screenshot_2020-02-19 RealTime XRP On Demand Liquidity Tracker - ODL Tracking.png

 

Can't wait for the days when we're processing $100MM on a weekly basis. Hopefully that level of utility/demand will help establish a floor for the price but who knows. Could very well play out that as ODL volume increase so does trading volume such that the current ratio of trading volume to utility volume stays the same. But you would think this scenario would also have a positive impact on price given the fixed supply.

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18 minutes ago, Mpolnet said:

Can't wait for the days when we're processing $100MM on a weekly basis. Hopefully that level of utility/demand will help establish a floor for the price but who knows. Could very well play out that as ODL volume increase so does trading volume such that the current ratio of trading volume to utility volume stays the same. But you would think this scenario would also have a positive impact on price given the fixed supply.

Let‘s hope otherwise I would kick my butt for not having invested in Chainlink back in   September 2017.

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