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Key Metrics Suggest A Bright Future For The Third Biggest Crypto

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At the end of the third quarter of the year, XRP, the native token of the XRP Ledger (XRPL), consolidated its position as the seventh largest cryptocurrency by market capitalization, reaching approximately $34.7 billion.

This represents a significant increase of 31.1% in Traded market value Quarterly (QoQ) compared to the second quarter. The price of XRP also saw a significant increase of 28.5% during the same period.

However, with the recent victory of President-elect Donald Trump and a clearer horizon on the regulatory front in the US, these metrics have fallen flat, with the last 3 weeks’ rise being the largest in nearly 7 years.

XRP sees a 94% increase in daily transactions

Research firm Messari and Q3 a report It turns out that the recent momentum can be attributed to several key developments. Notably, asset management firm Grayscale launched the XRP Trust in September, giving accredited investors a new way to acquire XRP.

This development, along with S-1 filings by Exchange-traded fund ETF issuers Bitwise, Canary, 21Shares, and WisdomTree have all launched XRP ETFs in recent months, underscoring growing institutional interest in the token.

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In the third quarter, several key network metrics reversed previous declines. Average daily transactions rose 94% quarter-on-quarter to 1.7 million, while the number of new addresses increased 10% to 105,000.

However, the increase was largely driven by microtransactions (transactions involving less than 1 XRP), which Ripple’s report noted was linked to a spam campaign. It is worth noting that this increase in New titles This contrasts with a 34% year-over-year decline in quarterly new titles from Q3 2023 to Q2 2024.

Despite the uptick in some metrics, total active addresses fell 3% QoQ, driven by a 20% decline in active sending addresses, while unique receiving addresses rose 7%.

The price is approaching the 2018 record high

Payment transactions also showed notable growth, rising by 110% quarter-on-quarter after witnessing declines in the previous two quarters. This increase follows a significant increase in registration activities that began at the end of 2023.

In addition to payment transactions, NFT-related activities on XRPL have also seen notable changes. NFT mining and burning transactions increased by 93% and 148%, respectively, while NFT creation and bid acceptance transactions saw slight declines.

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However, if we dig deeper into the Q4 data, XRP has seen a notable upward trend in years, with its market capitalization rising by nearly $130 billion in just three weeks, making it the most popular cryptocurrency in the world. The third largest digital asset In the market, just behind Bitcoin (BTC) and Ethereum (ETH).

Its price has clearly followed suit, with a massive 432% uptrend in the past few weeks to a current trading price of $2.71 per token, close to the record high of $3,040 reached during the 2018 bull run. And now with only $20 percentage gap between the current price and the all-time high.

Overall, data from Q3 and part of Q4 paint a picture of a growing and evolving XRP ecosystem characterized by increased transaction activity, institutional interest, and commitment to improving XRP’s value proposition.

The daily chart shows that the price of XRP is trending upward. source: XRPUSDT on TradingView.com

Featured image of DALL-E, chart from TradingView.com

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