Messari, a leading crypto analytics company, recently published a detailed report on the performance of the XRP Ledger in Q3 2023. The data, accumulated in partnership with XRPScan, CoinGecko and Coin Metrics, paints a picture of growth in certain areas while highlighting potential challenges in others.
XRP Ledger Sees Solid Growth
messari report highlights that after the historic decision in the Ripple vs. lawsuit. SEC in July, which confirmed that (THE LAST YEAR).
Further underscoring the vitality of the This marks a stunning reversal from the second quarter, nullifying its decline and putting it on par with the numbers seen at the end of the first quarter.
“Average daily values for transactions and all types of active addresses hit yearly lows in the third quarter,” Messari said. Despite this, there was a net increase of around 125,000 accounts in the third quarter, bringing the total to 4.81 million. New addresses increased 14.6% to 159,100, and deleted addresses decreased a considerable 68.3% quarter-on-quarter, retreating from the unusual peak seen in the second quarter.
The report also addressed the technical complexities of the XRP Ledger, noting that the active recipient metric, which represents addresses receiving transfers or other transactions, significantly influenced the activity increases. Senders, primarily exchanges and escrow solutions, played a critical role in these spikes, distributing tokens to vast swaths of previously inactive recipients.
Messari highlighted a discrepancy between the number of active recipient and sender addresses. They attributed this inequality to centralized exchanges and custodians using destination tags and executing payment transactions. These transactions have more receiving addresses than sending addresses, which skews the metrics.
Notably, between July 30 and August 13, XRPL averaged 122,000 daily active recipient addresses, which is a substantial 3.3 times the daily average in the third quarter.
Delving into the transactional landscape of the XRP Ledger, Messari clarified that daily transactions comprise 29 different types, from payments to nft burns. “OfferCreate,” a transaction that submits orders for cryptoasset exchanges, remained dominant.
This type of transaction initiates a DEX limit order but does not necessarily culminate in a trade unless an existing open order is fulfilled. Payment transactions experienced a quarter-on-quarter increase of 25.2%, reaching an average of 226,000 daily.
The decentralized ledger exchange witnessed a significant increase in daily volume, which skyrocketed by 390%, from $0.5 million in Q2 to $2.7 million in Q3. This suggests a growing interest in decentralized trading on the ledger. nft transactions also increased, rising 7.3% to 16,671 in the third quarter from 15,540 in the second.
Flurry of technical advances
In terms of technical progress, Messari highlights the numerous initiatives undertaken in the ecosystem during the last quarter. “New developments, both in the base layer and in other networks of the larger ecosystem, aim to create additional use cases for XRPL,” the firm commented.
On the mainnet, the built-in automated market maker was built into the ripple node software V1.12.0. This will increase the liquidity of tokenized assets and provide opportunities for retail users to contribute to liquidity.
“Hooks”, a programmability solution, is available on devnet and is approaching integration with Xahau Network. Xahau, built on Hooks, released its whitepaper this quarter, signaling the next wave of applications and solutions poised to leverage ledger capabilities. Another feature, Clawback, allows asset issuers to recover funds from users to meet regulatory requirements.
In conclusion, Messari’s Q3 data and insights paint a bullish picture of XRP Ledger’s continued growth and relevance in the cryptosphere. Its solid growth, coupled with strategic technical advancements, paints a future full of opportunities for XRP Ledger.
At press time, XRP was trading at $0.5758.
Featured image from iStock, chart from TradingView.com
