XRP Ledger (XRPL) Performance in Q4 2023: Report Highlights
A recent report by Messari provides insights into the performance of the XRP Ledger (XRPL) during the fourth quarter (Q4) of 2023.
Distribution of 4 Billion XRP Contributes to Market Cap Growth
In Q4 2023, XRP became the sixth-largest cryptocurrency by market capitalization, reaching $33.7 billion. The increase in market cap was primarily due to the distribution of 4 billion XRP and a significant price spike on November 13.
Throughout the year, 4 billion tokens were distributed, accounting for 8% of the XRP supply. However, the impact of the price spike overshadowed this distribution.
The XRPL employs a transaction fee-burning mechanism, but the low transaction fees have resulted in a relatively low burn rate.
Network Activity Shows Mixed Trends
Q4 2023 marked a turning point for XRP as it concluded a legal battle with the US SEC. This ruling triggered a surge in XRP’s price and its subsequent relisting on major exchanges.
In terms of network activity, active addresses decreased while transactions increased. A significant portion of transaction activity originated from a group of accounts sending transactions to a single account.
Hot Take: XRP Ledger Continues to Grow
The Q4 2023 report on the XRP Ledger highlights its growth driven by factors such as price spikes, legal victories, and network activity. With an expanding market capitalization and increasing adoption, XRP solidifies its position in the cryptocurrency market.
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