Ripple Transaction Count Down 65%, Will This Affect XRP Prices?
15 Mai 2023 - 3:00PM
NEWSBTC
The number of on-chain Ripple (XRP) transactions on the XRPL is
down 65% from 2.5 million on March 19 to less than 900,000 on May
14, 2023. XRP Transactions Crashing As of May 14, 2023, 852,000
transactions were processed by the XRPL, a decentralized blockchain
network by Ripple Labs curated for fast value transfer. This
represents a 65% drop from March 19 peak when the total number of
transactions on the XRPL stood at over 2.5 million. Notably, there
has been no solid technical reason, such as blockchain or node
vulnerability in the XRPL, during this period to explain the
contraction in transaction count. Related Reading: Ripple CLO
Exposes How SEC Ignores Law And Brags About It However, what’s
evident is that the crypto market has been under pressure in the
last two months from March to May 2023. This might have contributed
to the drop in the number of on-chain transactions. On March 29,
XRP prices peaked at around $0.58. This was 10 days after the XRP
transaction count surged to the highest level on March 19. From the
second half of March, however, transaction count and XRP prices
have been falling. XRP prices are down 27% to $0.42 as of writing
on mid-May, down from $0.58 registered on March 29. However,
whether XRP prices will continue to track lower, mirroring the
number of XRPL transaction count, remains uncertain. Overall, the
number of on-chain transactions can directly influence transaction
fees and prices. Moreover, it can provide insight into the level of
demand for the cryptocurrency and the blockchain network. The more
demand for the underlying network’s token, the higher the trading
volumes, and this upsurge can influence prices. On the XRPL,
users pay fees using XRP. Therefore, the higher the demand for XRP
in transaction settlement, the more upward pressure there will be
for the native currency. The contraction in the number of XRP
transactions is at the back of declining prices. Nonetheless, it
should be noted that the drop in XRP prices wasn’t an isolated
event. Like the other crypto prices, XRP and top coins, including
BTC and ETH, have been retracing from recent peaks registered in
March and April 2023. As an illustration, after surging to as
high as $31,000, BTC prices have since dropped, falling to as low
as $25,800 on May 12. Meanwhile, XRP is currently trading at
$0.41, down from $0.58 posted in late March 2023. The SEC-Ripple
Case The drop in XRP transaction count can also be due to market
sentiment as the community monitors the ongoing SEC-Ripple case
which might end this year. The United States Securities and
Exchange Commission (SEC) sued Ripple’s executives in December 2020
for conducting an illegal initial coin offering and using XRP to
raise funds, breaking federal security laws. In their assessment,
the regulator says XRP is an unregistered security. Related
Reading: Ripple CTO Labels BEN Coin As Scam, Bitboy Reacts
Depending on the Judge’s ruling in the coming month, the outcome of
the suit may impact not only the XRP and activity on the XRPL but
also influence how regulators perceive crypto in the United States.
Feature Image From Canva, Chart From TradingView
Ripple (COIN:XRPUSD)
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Ripple (COIN:XRPUSD)
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