XRP Transactions Fall, But Active Wallets And DeFi Liquidity Tell A Different Story

As a seasoned researcher with years of experience delving into the intricacies of the blockchain world, I find the trends within XRP‘s ecosystem both fascinating and thought-provoking. The recent analysis by CryptoQuant analyst Wenry has shed some enlightening insights that align with my own observations.


Regarding XRP, the digital currency ranked sixth by market value, there’s been a noteworthy pattern in its transactional behavior, even though some key indicators have experienced minor setbacks.

A CryptoQuant analyst named Wenry recently provided an analysis that highlights significant movements within the XRP system, providing valuable information about hidden activities. Specifically, the analyst disclosed the categorization of XRP transaction usage.

XRP Transactions: Decline in NFT Activity And Rise in DEX Volume

As per Wenry’s findings, the daily transaction volume of XRP is on par with significant Tier 1 network platforms, demonstrating that the XRP Ledger continues to be actively used, despite being less recognized by individual investors compared to other blockchain networks.

According to Wenry’s report published on CryptoQuant QuickTake, he pointed out that there was a 10.39% rise in newly created wallets on the XRP Ledger between September 15 and October 15, 2023, which resulted in a total of 18,321 new accounts.

XRP Transactions Fall, But Active Wallets And DeFi Liquidity Tell A Different Story

Although the total transactions and payments decreased by 17.57% to 18.82 million and 26.16% to 6.81 million respectively, there was a rise of 14.19% in the number of active wallets on XRPL, suggesting that users remain actively involved with the platform.

It appears from these figures that although the number of transactions is decreasing, the number of active users in the system seems to be increasing. In analyzing this data, Wenry focused on activities linked to token trading and the volume of decentralized exchanges.

Although overall trades on the XRP Ledger decreased by 6.83%, the volume of transactions on decentralized exchanges rose by 17.64%, climbing from $3.91 million to $4.60 million.

This change indicates that while there was a minor drop in total trades, a higher volume of transactions took place on non-centralized exchanges. This suggests ongoing curiosity and engagement with decentralized finance (DeFi) offerings on the XRP Ledger.

As a researcher delving into the world of Non-Fungible Tokens (NFTs), my findings indicate a noticeable drop in NFT-related activities on the XRPL. Specifically, the number of new NFTs being minted, as tracked by NFTokenMint, has decreased dramatically – a 70.66% decline to be exact, from 65,021 to 19,076. This data suggests a possible shift or slowdown in the adoption and creation of NFTs on this particular network.

In simpler terms, the number of accepted offers for buying NFTs (NFTokenAcceptOffer) decreased by about 30.88%. Contrastingly, the percentage of canceled NFT transactions (NFTokenCancelOffer) slightly rose by 0.20%, suggesting that while the minting and trading of NFTs may have reduced, there’s still a certain level of stability within the overall NFT market.

AMM Liquidity and Increased Participation

As a researcher delving into the intricacies of the XRP Ledger, one striking observation from my analysis was the robust expansion in Automated Market Maker (AMM) liquidity. Metrics pertaining to AMM displayed substantial growth, with AMMDeposit surging by 62.35%, AMMCreate skyrocketing by 143.10%, and AMMWithdraw experiencing an uptick of 42.97%.

These rises signify growing trust in the liquidity resources within the XRPL, as more individuals contribute liquidity and establish new pools. The significant spike in AMMCreate, climbing from 58 to 141, indicates a rise in users engaging in liquidity provision on the platform.

On the other hand, there was a significant dip in AMM-related activity concerning the AMMBid, which fell by 81.82%. Yet, this reduction didn’t hinder the robustness of the XRP Ledger’s decentralized liquidity offerings, as shown by the increase in liquidity deposits and the emergence of new pools.

As per Wenry’s explanation, these measures show an increasing faith in the current liquidity pools and the wider Automated Market Maker (AMM) system within the XRP Ledger, implying a growing trust in this environment.

XRP Transactions Fall, But Active Wallets And DeFi Liquidity Tell A Different Story

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2024-10-23 10:34