XRP Ledger Daily Payment Volume Soars 350%, Hitting 2 Million Transactions

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As a seasoned crypto investor with a deep understanding of the market, I’m particularly intrigued by the recent progress of the XRP Ledger (XRPL) as highlighted in the Messari report. The decentralized public blockchain’s notable growth during Q1 2024 is an encouraging sign for XRP investors like myself.

I’ve analyzed the latest Messari report, and it highlights impressive advancements on the XRP Ledger (XRPL) during Q1 2024. As a decentralized public blockchain, XRPL plays a crucial role in enabling the transfer of XRP, fiat currencies, and other digital assets. The network has displayed significant activity throughout this period.

XRP Ledger Burn Rate Slows Amid Low Fees

In Q1 2024, XRP, the token that runs on the XRPL platform, ranked as the sixth largest cryptocurrency by market capitalization, boasting a value of approximately $34.1 billion, which is currently around $29 million. Although its price experienced a minor decline, the circulating market cap for XRP demonstrated a 1.3% increase compared to the previous quarter (QoQ).

The XRPL automatically destroys a portion of each transaction fee, contributing to a deflationary effect for the XRP currency with a total supply of 100 billion tokens.

Starting from the creation of the XRP Ledger, around 12 million XRP have been destroyed. The scanty XRP destruction in Q1 can be explained by the minimal transaction fees on the network, which are under $0.002 for each transaction.

One billion XRP is transferred from escrow to Ripple every month, with any unused tokens getting locked away in fresh escrow contracts. This practice continues until roughly 45 billion XRP are made available. Once this point is reached, the fees burned as part of transactions will become the significant factor influencing XRP’s supply.

Although XRP‘s quarterly price declined by a modest 0.1%, this was less than the impressive 63.0% rise observed in the broader crypto market, XRP managed to register a significant gain of 14.8% compared to the same period the previous year.

Inscription-Fueled Transactions Propel XRPL Daily Payments

As a crypto investor in XRP, I’d interpret the report as follows: The XRPL network generates revenue primarily through transaction fees that are then burned, leading to a redistribution of wealth from fee payers to XRP holders. This setup is noteworthy because it fosters an active ecosystem where both users and XRP investors benefit. Intriguingly, the report reveals that network activity has seen impressive growth: active addresses have surged by 37% quarter-over-quarter (QoQ), while transactions have experienced even more substantial growth, increasing by a striking 113% QoQ.

Approximately 45,000 accounts contributed to around 30 million transactions on the XRPL network, with a significant proportion of these transactions being inscriptions – a transaction type that gained prominence in early 2023.

Based on Messari’s analysis, XRP Script-enabled inscriptions significantly contributed to the remarkable increase in daily transactions, which jumped by an impressive 350% quarter over quarter, reaching approximately 2 million.

In the final analysis, the report reveals that the XRP Ledger blockchain experienced a gain of approximately 150,000 new accounts during Q1, resulting in a total account count of around 5.15 million, marking a 3.1% rise.

I analyzed the quarter-over-quarter decrease of 12.4% in new addresses, totaling 183,000, which was mainly attributed to an unusually high number of addresses generated during the previous quarter. This surge in address creation coincided with the initiation of inscription activity.

I’ve checked the current value of XRP, and it stands at $0.5279 as we speak. Unfortunately, there’s been a 2.5% decrease in its value over the last 24 hours, and a more significant loss of 3.5% within the past week. These figures align with the overall trend in the crypto market.

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2024-05-29 06:04