Ripple’s blockchain network, XRP Ledger, has recorded significant on-chain growth over the past month. This signifies investor confidence in the network and its native token, XRP.
According to a CryptoQuant QuickTake from analyst Wenry Seoul, XRP saw an increase in automated market maker (AMM) liquidity, decentralized exchange (DEX) transaction volume, and the number of new wallets created from September 15 to October 15, 2024.
XRPL’s On-chain Analysis
Wenry noted that the XRP Ledger (XRPL) is not very popular among retail investors. However, the network’s daily transaction volume competes with major layer-1 blockchains. The analysis determines where the transactions are used on the network.
XRPL’s basic on-chain metrics, like new wallet creation and active wallets, rose by 10.39% and 14.19% to 18,321 and an average of 10,887, respectively. However, the total transactions on the network fell 17.67% to 18.82 million, and payments were reduced by 26.16% to 6.81 million. Wenry said the rise in active accounts and wallets signifies continued user engagement on the network, regardless of the decline in transactions and payments.
XRP recorded a 17.64% increase in its DEX volume from $3.91 million to $4.6 million, although the coin’s market capitalization plunged 15.24% from $103.31 million to $87.56 million.
Additionally, XRP trades fell 6.83% from 6.88 million to 6.41 million. XRPL’s listed assets and trust lines also plummeted slightly to 3,873 and 7.25 million, respectively.
“Despite fewer trades, DEX volume rose significantly, indicating more activity on decentralized exchanges even as market capitalization declined,” Wenry stated.
NFT Ecosystem Sees Less Activity
The CryptoQuant analyst further disclosed that XRPL’s AMM liquidity providers showed confidence in existing pools, as seen in the rise in deposits. Different aspects of AMM liquidity provision on XRPL recorded significant growth in the last month.
AMMDeposit and AMMVote surged by more than 62% to 24,306 and 152, respectively. AMMCreate and AMMWithdraw increased by 143% and 42% to 141 and 6,159, respectively. However, AMMBid fell 81% from 22 to 4.
Amid the rise in AMM liquidity provision, XRPL’s non-fungible token (NFT) activity declined heavily, with the network’s ecosystem recording lower volumes and fewer minted tokens.
Nevertheless, XRPL could see greater on-chain activity in the coming months, especially with Ripple’s newly launched stablecoin, RLUSD.
The post Here’s How XRP Ledger Has Performed On-Chain Over the Past Month appeared first on CryptoPotato.
