This article is also available in Spanish.
XRP, the sixth-largest cryptocurrency by market cap, has seen an interesting trend in its transaction activity, despite some notable declines in other metrics.
Modern analysis Wenry, a CryptoQuant analyst, highlights key trends within the XRP ecosystem, and provides insight into the activity happening behind the scenes. The analyst specifically revealed where XRP transactions are being used by category activity.
Related reading
XRP Transactions: Decrease in NFT activity and rise in DEX volume
According to Wenry, XRP’s daily transaction volume was “competitive with major tier-one networks,” showing that Ledger’s XRP is still very active, although it is less well-known to retail investors compared to other blockchain networks.
In his analysis published on the CryptoQuant QuickTake platform, Winry 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 on-net transactions fell by 17.57% to 18.82 million, and payments fell by 26.16% to 6.81 million. Despite these declines, the number of active wallets on XRPL increased by 14.19%, indicating continued user interaction with the platform.
These numbers indicate that although fewer transactions are being processed, the active user base continues to grow. Winry’s analysis explored on-chain activity related to token trading and decentralized exchange (DEX) volume.
While total trades on the XRP Ledger fell by 6.83%, decentralized exchange volume increased by 17.64%, from $3.91 million to $4.60 million.
This shift indicates that despite the slight decline in overall trading, more activity has 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 decrease in NFT-related activities on XRPL. NFTkenMint, which tracks new NFTs created on the network, fell 70.66%, from 65,021 to 19,076.
Likewise, NFTokenAcceptOffer, which represents the acceptance of offers to buy NFTs, fell by 30.88%. Despite these declines, the NFTokenCancelOffer Index, a metric that tracks canceled NFT transactions, rose slightly by 0.20%, indicating that although fewer NFTs have been minted or traded, some stability has remained in the broader ecosystem. For NFT.
AMM liquidity and increased participation
The highlight of the analysis was the strong growth in Automated Market Maker (AMM) liquidity on the XRP Ledger. AMM-related metrics saw significant increases, with AMMDeposit up 62.35%, AMMCreate up 143.10%, and AMMWithdraw up 42.97%.
These increases reflect growing confidence in liquidity pools on XRPL, as more participants provide liquidity and create new pools. The significant rise in AMMCreate, which jumped from 58 to 141, indicates that more users are participating in providing liquidity on the network.
Related reading
However, one area of decline in AMM-related activity was AMMBid, which declined by 81.82%. Despite this decline, the overall rise in liquidity deposits and the creation of new pools indicate that XRP Ledger’s decentralized liquidity offerings remain strong.
According to Wenry, these metrics highlight the growing confidence in existing liquidity pools and the broader AMM ecosystem in XRP Ledger.
Featured image created with DALL-E, chart from TradingView
Comments are closed, but trackbacks and pingbacks are open.