Understanding the Surge in XRP Ledger Activity
In recent times, with the broader market recovery, the network activity on the XRP Ledger (XRPL) has seen a significant uptick in various metrics. According to Messari’s recent report, active addresses and transactions on XRPL have surged by 37% and 113% quarter-over-quarter (QoQ), respectively.
- Around 45,000 accounts have been responsible for a substantial portion of this increased activity, with over 30 million transactions being sent to a single account for inscription-related activities.
The Impact of Inscriptions on XRPL Network Activity
One of the key drivers behind the surge in XRPL activity has been inscriptions, a type of transaction that gained popularity on Bitcoin and has now spread to other major networks like XRPL. This trend has often led to significant spikes in network activity.
- Despite the high transaction volumes, XRPL has shown resilience by handling over 80 transactions per second for an entire day without any network issues, as reported by Messari.
- The total number of accounts on XRPL has seen a 3.1% increase, reaching 5.15 million, with a rise of 150,000 accounts in total.
Changes in XRPL Address Activity
While there has been a decrease of 12.4% in new addresses on XRPL due to a surge in Q4 during the inscription activity, there has been an annual increase of 29.8% from Q1 2023 to Q1 2024. Additionally, deleted addresses have increased by 55.9% QoQ to 33,000 as inscription activity has slowed down.
- The rise in active addresses, notably the 92% QoQ increase in unique senders, underscores the impact of inscription activities, with unique senders surpassing unique receivers for the first time since Q1 2022.
The Presence of DeFi and Stablecoins on XRPL
The total market capitalization of fungible tokens, known as Issued Currencies, has seen a 16% QoQ decrease to $142 million on XRPL. Among the 3,300 assets listed on the network, Sologenic (SOLO) has emerged as the leading token, constituting 42% of the total market cap.
- Stablecoins and wrapped tokens have gained popularity on XRPL in terms of the number of holders compared to other tokens. Gatehub and Xumm have collaborated to offer 14 digital assets on XRPL.
- Even though stablecoins on XRPL have not yet achieved the adoption levels of major stablecoins on other networks like Tether’s USDT or Circle’s USDC, Ripple’s recent announcement of launching a USD-pegged stablecoin on both XRPL and Ethereum could potentially change this landscape.
The Future of XRPL with Stablecoin Adoption
Ripple’s upcoming USD-pegged stablecoin on XRPL and Ethereum, backed by US dollar deposits, short-term US treasuries, and other cash equivalents, along with monthly third-party attestations, could trigger a substantial liquidity event on the XRPL network.
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