In the current year, amidst a broader market recovery, the XRP Ledger (XRPL) has witnessed a surge in network activity across various metrics. According to the latest report from Messari, active addresses saw a 37% increase, while transactions surged by 113% quarter-over-quarter (QoQ). This growth can be attributed to a concentrated group of around 45,000 accounts that collectively initiated over 30 million transactions, primarily for inscription-related activities.
Despite the high transaction volumes, XRPL exhibited resilience by handling over 80 transactions per second for an entire day without any network issues, as noted by Messari. The total number of accounts on the XRPL also witnessed a 3.1% increase to reach 5.15 million. Although new addresses decreased by 12.4% QoQ due to a surge in Q4 during the inception of inscription activity, there was a 29.8% annual increase from Q1 2023 to Q1 2024.
The surge in active addresses, especially the 92% QoQ rise in unique senders, underscored the impact of inscription activities on the XRPL network. Unique senders surpassed unique receivers for the first time since Q1 2022, indicating a significant shift in network dynamics.
The total market cap of fungible tokens, known as Issued Currencies, experienced a 16% decline QoQ to $142 million. Among the plethora of assets listed on the XRPL, Sologenic (SOLO) emerged as the dominant token, constituting 42% of the total market cap. The top three tokens collectively accounted for 65% of the total market cap.
Stablecoins and wrapped tokens have gained significant popularity on XRPL, especially when measured by the number of holders, in comparison to other tokens. Gatehub and Xumm have collaborated to offer 14 digital assets on XRPL. Despite this, stablecoins on XRPL have not yet reached the adoption levels of major counterparts on other networks like Tether’s USDT or Circle’s USDC.
With Ripple’s recent announcement to introduce a USD-pegged stablecoin on both the XRPL and Ethereum, there is potential for a transformative impact on the XRPL network. This stablecoin will leverage XRPL native functionality and ERC-20 token standards and will be fully backed by US dollar deposits, short-term US treasuries, and other cash equivalents, with monthly third-party attestations. Such an initiative could potentially trigger a significant liquidity event on the XRPL network.
The surge in XRPL network activity in 2024 reflects the evolving landscape of blockchain networks and the growing interest in inscription-related activities. With potential advancements in stablecoin offerings, the XRPL network is poised for further growth and adoption in the coming years.
Leave a Reply