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XRP’s Ascendancy in the Cryptocurrency Market
As the third quarter of the year concluded, XRP, the native token of the XRP Ledger (XRPL), asserted itself as the seventh-largest cryptocurrency by market capitalization, boasting a valuation of approximately $34.7 billion. This marks a significant 31.1% increase in its circulating market cap compared to the previous quarter. Concurrently, the price of XRP surged by an impressive 28.5%, reflecting the positive momentum in its market performance.
Despite these gains, the impact of the recent election victory of President-elect Donald Trump and a clearer regulatory landscape in the United States has tempered expectations. The last three weeks have seen a remarkable rally, the largest in almost seven years, yet these metrics still fall short of their potential.
XRP Sees a 94% Surge in Daily Transactions
According to a report by research firm Messari, the recent surge in XRP’s performance can be attributed to several key developments. One significant factor is the launch of the XRP Trust by asset management firm Grayscale in September. This initiative provided accredited investors with a new avenue to gain exposure to XRP. Additionally, the filing of S-1 documents by exchange-traded fund (ETF) issuers such as Bitwise, Canary, 21Shares, and WisdomTree to introduce XRP ETFs has underscored the growing institutional interest in the token.
Network Metrics Reflect Rebound
In the third quarter, several critical network metrics experienced a reversal of previous declines. Average daily transactions skyrocketed by 94% quarter-over-quarter, reaching a staggering 1.7 million. Furthermore, the number of new addresses increased by 10%, totaling 105,000. However, it’s important to note that the surge in transactions was primarily driven by microtransactions (transactions involving less than 1 XRP), which Ripple’s report attributed to a spam messaging campaign. This increase in new addresses contrasts with a 34% year-over-year decline in quarterly new addresses from Q3 2023 to Q2 2024.
Despite the uptick in certain metrics, total active addresses saw a 3% decrease quarter-over-quarter. This decline was influenced by a 20% drop in active sending addresses, even as unique receiving addresses rose by 7%.
Price Approaches 2018 Record High
Payment transactions exhibited remarkable growth, surging by 110% quarter-over-quarter after experiencing declines in the previous two quarters. This surge followed a significant spike related to inscription activities that commenced at the end of 2023. Moreover, NFT-related activities on the XRPL showed notable changes. NFT minting and burning transactions increased by 93% and 148%, respectively, while NFT creation and offer acceptance transactions experienced slight declines.
Institutional Interest and Market Capitalization
Looking ahead into the fourth quarter, XRP has witnessed its most significant uptrend in years. Its market capitalization has soared by nearly $130 billion in just three weeks, positioning it as the third-largest digital asset on the market, trailing only Bitcoin (BTC) and Ethereum (ETH). The price of XRP has mirrored this ascent, with a colossal 432% increase in the past few weeks. It currently trades at $2.71 per token, nearing the record high of $3.04 reached during the 2018 bull run. The gap between the current price and the all-time high now stands at only 20%.
The Evolving XRP Ecosystem
In summary, the data from the third quarter and the early part of the fourth quarter paints a compelling picture of a growing and evolving XRP ecosystem. This growth is characterized by increased transaction activity, heightened institutional interest, and a commitment to enhancing XRP’s value proposition. The daily chart reflects XRP’s upward price trend, indicating a promising future for the token.
