In the midst of a broader market recovery, the XRP Ledger (XRPL) has experienced a surge in network activity across various metrics. According to Messari’s latest report, active addresses and transactions on the XRPL increased by 37% and 113% quarter-over-quarter (QoQ) respectively. This uptick in activity can be attributed to a concentrated group of around 45,000 accounts that collectively sent over 30 million transactions to a single account, primarily for inscription-related activities.
Despite the significant increase in transaction volumes, the XRPL demonstrated resilience by handling over 80 transactions per second for an entire day without any network issues. The total number of accounts also saw a 3.1% increase to 5.15 million, with a notable 29.8% annual increase from Q1 2023 to Q1 2024.
Impact of Inscription Activities
The rise in active addresses, particularly the 92% QoQ increase in unique senders, underscored the impact of inscription activities on the XRPL. Unique senders surpassed unique receivers for the first time since Q1 2022, indicating a shift in transaction patterns on the network.
Market Cap and Token Distribution
The total market cap of Issued Currencies, fungible tokens on the XRPL, fell by 16% QoQ to $142 million. Among the 3,300 assets listed on the XRPL, Sologenic (SOLO) emerged as the leading token, accounting for 42% of the total market cap. The top three tokens collectively represented 65% of the total market cap, showcasing a high level of token concentration on the network.
Rise of Stablecoins and Wrapped Tokens
Stablecoins and wrapped tokens have gained popularity on the XRPL, particularly in terms of the number of holders, in comparison to other tokens. Gatehub and Xumm have partnered to offer 14 digital assets on the XRPL. However, stablecoins on the XRPL have not yet reached the adoption levels of major stablecoins on other networks like USDT or USDC.
Ripple’s recent announcement to launch a USD-pegged stablecoin on both the XRPL and Ethereum could potentially change the landscape for stablecoins on the XRPL. Leveraging XRPL native functionality and ERC-20 token standards, the stablecoin will be fully backed by US dollar deposits, short-term US. treasuries, and other cash equivalents with monthly third-party attestations. This initiative has the potential to trigger a significant liquidity event on the XRPL network, paving the way for increased adoption of stablecoins.
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