XRP may not be shining brightly in terms of market price, but the activity on the XRP Ledger (XRPL) has reached its peak in recent months, as users are increasingly returning to the platform. While XRP has underperformed compared to its peers, being the only major cryptocurrency among the top eight to record a month-over-month decline, other digital currencies such as Bitcoin, Ethereum, and Solana have managed to gain at least 5%. This downturn comes in the wake of a price drop following the SEC’s recent appeal in the ongoing Ripple case, which has cast a shadow over the asset. Despite these hurdles, the XRPL is witnessing a revival in on-chain activity, hinting at renewed investor interest and engagement, as reported by data from Santiment. Let’s explore the details!
Significant Surge in Wallet Activity
Recent insights from Santiment highlight a remarkable spike in wallet activity on the XRP Ledger. On a single day, 35,799 unique wallets were active in making transfers, marking the highest level of activity in over three months. This surge signifies that more users are actively engaging with the XRP network. Additionally, 3,858 new wallets were created daily, the highest rate observed in over seven months. This influx of new wallets suggests growing interest in XRP and its potential applications across various sectors.
Importance of Daily Active Addresses
Daily active addresses serve as a crucial metric for gauging user engagement and the overall health of the XRP network. The rise in active addresses during Q4 2024 indicates that more users are adopting the XRP Ledger. Interestingly, the increasing number of daily transactions also underscores that the XRP Ledger is gaining popularity for a diverse range of activities, positioning XRP as a formidable contender in the crypto market landscape.
The Launch of RLUSD
A significant catalyst for the recent surge in wallet activity is Ripple’s introduction of its new stablecoin, RLUSD, on both the XRP Ledger and Ethereum networks. In its initial phase, 385 RLUSD tokens were minted—185 on the XRP Ledger and 200 on Ethereum. This stablecoin is pegged to the U.S. dollar (1 RLUSD = 1 USD) and is backed by a combination of dollar deposits, short-term U.S. government bonds, and cash. To ensure transparency and fair practice, its reserves undergo monthly audits.
Looking Ahead: What’s Next for XRP?
Despite XRP’s price not reflecting the recent surge in on-chain activities, the community remains optimistic about a potential future price increase. According to market sentiments, a significant 85% of users hold a bullish outlook on XRP, which currently stands as the seventh-largest cryptocurrency. Recently, Arthur Kirjakulov, CEO of XPmarket, noted that 10 major wallets account for 58% of all transactions, with a single wallet representing 15%. However, he cautioned against directly linking these major wallets with Ripple.
On the other hand, crypto analysts like Egrag forecast that XRP could reach $1.4679 after breaking out of its current range, with the potential to eventually aim for $7.5. Another analyst, Bobby A, anticipates that XRP could rise to between $4 and $6, particularly since it hasn’t dropped below $0.51 following the SEC’s notice of appeal. As of now, XRP is trading at $0.55, having gained over 1% in the last 24 hours.
