The latest report by Messari has revealed a substantial increase in network activity on XRP Ledger (XRPL) this year, coinciding with the broader market recovery. Active addresses and transactions on the network have surged by 37% and 113% quarter-over-quarter (QoQ) respectively, underlining a growing interest in XRPL. Despite the surge, the network has proven to be resilient, handling over 80 transactions per second for an entire day without facing any significant issues as reported by Messari.
A significant portion of the increased activity on XRPL can be attributed to a concentrated group of around 45,000 accounts, which collectively sent over 30 million transactions to a single account, primarily for inscription-related activities. Inscriptions, which gained popularity on Bitcoin in early 2023, have now spread to other major networks including XRPL, leading to notable spikes in network activity. The surge in inscription activities has also resulted in a rise in the total number of accounts on XRPL by 150,000, marking a 3.1% increase to 5.15 million.
Despite the overall increase in network activity, the total market cap of fungible tokens on XRPL, known as Issued Currencies, experienced a 16% decrease QoQ, amounting to $142 million. Among the plethora of assets listed on XRPL, Sologenic (SOLO) emerged as the leading token, constituting 42% of the total market cap. The top three tokens collectively represented 65% of the market cap, showcasing a high level of concentration in token distribution on the network.
Stablecoins and wrapped tokens have gained prominence on XRPL, particularly in terms of the number of holders, compared to other tokens. Collaborative efforts by platforms like Gatehub and Xumm have led to the offering of 14 digital assets on XRPL. Despite the popularity of stablecoins on XRPL, they have not reached the adoption levels seen on other major networks such as Tether’s USDT or Circle’s USDC. However, with Ripple’s recent announcement of launching a USD-pegged stablecoin on both XRPL and Ethereum, there is potential for increased adoption. This stablecoin will be backed by US dollar deposits, short-term US treasuries, and other cash equivalents, with monthly third-party attestations, which could potentially trigger a significant liquidity event in the future.
The surge in network activity, rise in inscription-related transactions, fluctuating market cap, and the emergence of stablecoins on XRPL signal a dynamic and evolving ecosystem. As the network continues to grow and adapt to changing market trends, the future prospects for XRPL remain intriguing with potential for further advancements in token distribution and adoption levels.
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