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XRP, the sixth-largest cryptocurrency by market cap, has seen an interesting trend in its trading activity, despite some notable drops in other metrics.
A recent analysis by a CryptoQuant analyst, Wenry, sheds light on key trends within the XRP ecosystem, offering insights into the activity occurring behind the scenes. The analyst particularly revealed where XRP transactions are used by category activity.
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XRP Transactions: nft Activity Decreases and DEX Volume Increases
According to Wenry, XRP's daily trading volume has been “competitive with major Layer 1 networks,” demonstrating that the XRP Ledger is still very active, although it is less known to retail investors than other blockchain networks.
In his analysis published on the CryptoQuant QuickTake platform, Wenry highlighted that between September 15 and October 15, 2023, the creation of new wallets on the XRP Ledger increased by 10.39%, reaching a total of 18,321 new accounts.
However, total transactions on the network fell 17.57% to 18.82 million, and payments fell 26.16% to 6.81 million. Despite these drops, the number of active wallets on XRPL increased by 14.19%, indicating sustained user engagement with the platform.
These figures suggest that although fewer transactions are being processed, the active user base continues to grow. Wenry's analysis explored on-chain activity related to token trading and decentralized exchange (DEX) volume.
While total transactions on the XRP Ledger fell by 6.83%, decentralized exchange volume increased by 17.64%, from $3.91 million to $4.60 million.
This change suggests that despite a slight decline in overall trading, more activity occurred on decentralized platforms, demonstrating continued interest in decentralized finance (DeFi) solutions on the XRP Ledger.
As for non-fungible tokens (nft), the analysis showed a significant decrease in nft-related activities on the XRPL. NFTokenMint, which tracks new nfts created on the network, fell 70.66%, from 65,021 to 19,076.
Likewise, NFTokenAcceptOffer, which represents the acceptance of offers to purchase nfts, fell 30.88%. Despite these drops, NFTokenCancelOffer, a metric that tracks canceled nft transactions, increased slightly by 0.20%, indicating that while fewer nfts were minted or traded, some stability remained in the broader nft ecosystem.
AMM Liquidity and Higher Participation
A key highlight of the analysis was the strong growth in Automated Market Maker (AMM) liquidity on the XRP Ledger. AMM-related metrics saw considerable increases: AMMDeposit increased by 62.35%, AMMCreate increased by 143.10%, and AMMWithdraw increased by 42.97%.
These increases reflect growing confidence in XRPL liquidity pools, as more participants provide liquidity and create new pools. The increase in AMMCreate, from 58 to 141, suggests that more users are participating in providing liquidity on the network.
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However, one area of decline in AMM-related activity was the AMMBid, which fell 81.82%. Despite this decline, the overall increase in liquidity deposits and the creation of new funds indicate that XRP Ledger's decentralized liquidity offerings remain strong.
According to Wenry, these metrics highlight the growing confidence in existing liquidity pools and the broader AMM ecosystem in the XRP Ledger.
Featured image created with DALL-E, TradingView chart
