- XRP Ledger transactions surge 108%.
- Transaction fees on XRPL drop 45%.
- XRP price dips despite activity rise.
The XRP Ledger (XRPL) experienced a significant increase in transaction volume and a decrease in transaction fees during the first quarter of 2024, according to a report released by Ripple.
The report details that XRPL transactions surged by 108%, reaching 251.4 million in Q1 2024, compared to 121 million in the final quarter of 2023. Notably, this rise in transaction volume coincided with a 45% decline in the average transaction fee, falling from $0.001546 in Q4 2023 to $0.000856 by the end of March 2024.
The report attributes the decrease in fees to a return to normal activity levels on the XRPL without network congestion in Q1 2024. A spike in December 2023 due to testing on the ledger had previously contributed to higher fees.
While the report highlights positive on-chain metrics, such as a 5% increase in trading volume on the XRPL’s native Decentralized EXchange (DEX) and a doubling in the amount of XRP burned for transaction fees, it also acknowledges a decline in the creation of new XRP wallets. The number of new wallets established in Q1 2024 dropped by 11% compared to the previous quarter.
Analysts at Vet, an XRPL decentralized oracle network (dUNL) validator, suggest that the discrepancy between the slower growth in new wallets and the surge in transactions could indicate increased activity from existing users.
Despite the positive on-chain developments, the market value of XRP declined by 5% quarter-over-quarter, with the average price falling from $0.59 in Q4 2023 to $0.56 by the end of March 2024. The report also details changes in Ripple’s XRP holdings, with spendable XRP decreasing from 5.07 billion to 4.84 billion and escrowed XRP dropping from 40.7 billion to 40.1 billion between the end of 2023 and Q1 2024.
While the XRP Ledger’s Q1 performance reflects a surge in activity and a more efficient network, the decline in the price of XRP and the slowdown in new wallet creation raise questions about broader market adoption. The coming months will be crucial in determining whether these positive on-chain metrics translate into sustained growth for the XRP ecosystem.
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