XRP Transactions Fall, But Active Wallets And DeFi Liquidity Tell A Different Story
23 Octobre 2024 - 9:30AM
NEWSBTC
XRP, the sixth largest cryptocurrency by market capitalization, has
seen an interesting trend in its transaction activity, despite a
few notable declines in other metrics. A recent analysis by a
CryptoQuant analyst, Wenry, sheds light on key trends within the
XRP ecosystem, offering insights into the activity happening behind
the scenes. The analyst particularly revealed where XRP
transactions are used by category activity. Related Reading: XRP
Price Stays Range-Bound: Will It Soon Make a Move? XRP
Transactions: Decline in NFT Activity And Rise in DEX Volume
According to Wenry, XRP’s daily transaction volume has been
“competitive with major Layer 1 networks,” showing that XRP’s
Ledger remains highly active, even though it is less known to
retail investors than other blockchain networks. In his analysis
posted on the CryptoQuant QuickTake platform, Wenry highlighted
that between September 15 and October 15, 2023, the creation of new
wallets on the XRP Ledger increased by 10.39%, reaching a total of
18,321 new accounts. However, total transactions on the network
fell by 17.57% to 18.82 million, and payments dropped by 26.16% to
6.81 million. Despite these declines, the number of active wallets
on XRPL increased by 14.19%, indicating sustained user engagement
with the platform. These numbers suggest that while fewer
transactions are being processed, the active user base continues to
grow. Wenry’s analysis explored on-chain activity related to token
trading and decentralized exchange (DEX) volume. While total trades
on the XRP Ledger dropped by 6.83%, decentralized exchange volume
increased by 17.64%, from $3.91 million to $4.60 million. This
shift suggests that despite a slight decrease in overall trading,
more activity occurred on decentralized platforms, demonstrating
continued interest in decentralized finance (DeFi) solutions on the
XRP Ledger. Regarding non-fungible tokens (NFTs), the analysis
showed a significant decline in NFT-related activities on the XRPL.
NFTokenMint, which tracks new NFTs created on the network, dropped
by 70.66%, from 65,021 to 19,076. Similarly, NFTokenAcceptOffer,
which represents the acceptance of offers to buy NFTs, fell by
30.88%. Despite these declines, NFTokenCancelOffer, a metric that
tracks canceled NFT transactions, slightly increased by 0.20%,
indicating that while fewer NFTs were being minted or traded, some
stability remained in the broader NFT ecosystem. AMM Liquidity and
Increased Participation A key highlight of the analysis was the
strong growth in Automated Market Maker (AMM) liquidity on the XRP
Ledger. AMM-related metrics saw considerable increases, with
AMMDeposit rising by 62.35%, AMMCreate increasing by 143.10%, and
AMMWithdraw climbing by 42.97%. These increases reflect rising
confidence in the liquidity pools on the XRPL, as more participants
provide liquidity and create new pools. The surge in AMMCreate,
which jumped from 58 to 141, suggests that more users are
participating in liquidity provision on the network. Related
Reading: XRP Network Activity Surges As Price Seeks To Break $0.55
Resistance However, one area of decline in AMM-related activity was
the AMMBid, which dropped by 81.82%. Despite this decrease, the
overall rise in liquidity deposits and the creation of new pools
indicate that the XRP Ledger’s decentralized liquidity offerings
remain strong. According to Wenry, these metrics highlight the
growing trust in existing liquidity pools and the broader AMM
ecosystem on the XRP Ledger. Featured image created with DALL-E,
Chart from TradingView
Maker (COIN:MKRUSD)
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