XRP Ledger’s On-Chain Performance Review: Last Month Insights

The XRP Ledger, Ripple’s blockchain network, has experienced notable on-chain growth in the last month, reflecting investor confidence in both the network and its native token, XRP.

A recent QuickTake by analyst Wenry Seoul from CryptoQuant revealed that from September 15 to October 15, 2024, XRP has witnessed a surge in liquidity for automated market makers (AMM), increased transaction volume on decentralized exchanges (DEX), and a rise in new wallet creations.

On-chain Insights for XRPL

Wenry pointed out that the XRP Ledger (XRPL) isn’t widely embraced by retail investors; however, its daily transaction volume is comparable to that of leading layer-1 blockchains. The analysis focuses on identifying how transactions are utilized across the network.

Basic metrics like new wallet registrations and active wallets on XRPL grew by 10.39% and 14.19%, reaching 18,321 and an average of 10,887, respectively. Conversely, total network transactions decreased by 17.67% to 18.82 million, with payments dropping 26.16% to 6.81 million. Wenry emphasized that the growth in active accounts and wallets indicates ongoing user engagement, despite the decline in overall transactions and payments.

XRP experienced a DEX volume increase of 17.64%, rising from $3.91 million to $4.6 million, even as its market capitalization dropped by 15.24%, falling from $103.31 million to $87.56 million.

Moreover, the number of XRP trades fell by 6.83%, decreasing from 6.88 million to 6.41 million. Meanwhile, the quantity of listed assets and trust lines on XRPL also slightly declined to 3,873 and 7.25 million, respectively.

“Even with fewer trades, the significant rise in DEX volume shows increased activity on decentralized exchanges despite the decrease in market cap,” Wenry remarked.

Decline in NFT Ecosystem Activity

The CryptoQuant analyst also noted a decline in activity within XRPL’s NFT ecosystem, as lower volumes and fewer minted tokens were reported recently. However, XRPL’s AMM liquidity providers demonstrated confidence in existing pools, as indicated by higher deposits.

Metrics regarding AMM liquidity provision on XRPL showed considerable growth over the past month, with AMMDeposit and AMMVote climbing over 62% to 24,306 and 152, respectively. AMMCreate and AMMWithdraw surged by 143% and 42% to 141 and 6,159, respectively. In contrast, AMMBid saw an 81% decrease, falling from 22 to 4.

Despite the downturn in NFT activity, XRPL may experience increased on-chain activity in the upcoming months, particularly with the launch of Ripple’s new stablecoin, RLUSD.