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XRP, the sixth largest cryptocurrency by market capitalization, has seen an interesting trend in its trading activity, despite a few notable declines in other metrics.
The latest analysis by CryptoQuant analyst, Wenry, sheds light on key trends within the XRP ecosystem, providing insight into the work that goes on behind the scenes. The analyst pointed out in particular when XRP transactions use a phase function.
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XRP Transactions: Decline in NFT Activity and Increase in DEX Volume
According to Wenry, XRP’s daily transaction volume “competes with major Layer 1 networks,” indicating that XRP’s Ledger is still very active, even though it is less known to retail investors than other blockchain networks.
In his analysis posted on the CryptoQuant QuickTake platform, Wenry emphasized that between September 15 and October 15, 2023, the creation of new wallets in the XRP Ledger increased by 10.39%, reaching a total of 18,321 new accounts. .
However, total transactions on the network decreased by 17.57% to 18.82 million, and payments decreased by 26.16% to 6.81 million. Despite this decrease, the number of active wallets on XRPL increased by 14.19%, which shows the continued user engagement with the platform.
These numbers suggest that while fewer transactions are being processed, the active user base continues to grow. Wenry’s analysis examined on-chain activity related to token trading and decentralized exchange (DEX) volume.
While total transactions on the XRP Ledger decreased by 6.83%, the volume of exchanges increased by 17.64%, from $3.91 million to $4.60 million.
This change suggests that despite a slight decrease in overall trading, a lot of activity is happening on social media, showing the continued interest in decentralized finance (DeFi) solutions on the XRP Ledger.
Regarding non-fungible tokens (NFTs), the analysis showed a significant decrease in NFT-related activity on XRPL. NFTokenMint, which tracks new NFTs created on the network, fell 70.66%, from 65,021 to 19,076.
Similarly, NFTokenAcceptOffer, which represents the acceptance of requests to buy NFTs, decreased by 30.88%. Despite this decrease, NFTokenCancelOffer, a metric that tracks canceled NFT transactions, rose slightly by 0.20%, indicating that while fewer NFTs were being created or traded, some stability remained in the broader NFT ecosystem.
AMM Liquidity and Increased Participation
A key highlight of the analysis was the strong growth of the Automated Market Maker (AMM) in the XRP Ledger. AMM-related metrics saw significant increases, with AMDeposit increasing by 62.35%, AMMC increasing by 143.10%, and AMWithdraw increasing by 42.97%.
This increase reflects the growing confidence in the pools to spend on XRPL, as more participants provide funds and create new pools. The increase in AMMCreate, which jumped from 58 to 141, suggests that more users are participating in the provision of funds in the network.
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However, the one area of decline in AMM-related activity was AMMBid, which fell by 81.82%. Despite this decrease, the overall increase in liquidity deposits and the creation of new pools show that the XRP Ledger’s decentralized liquidity contributions remain strong.
According to Wenry, these metrics highlight the growing trust in existing spending pools and the broader AMM system in the XRP Ledger.
The featured image was created with DALL-E, a Chart from TradingView
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