- The XRP ledger [XRPL] saw an increase in network activity in the first quarter.
- This led to growth in quarterly turnover.
The XRP ledger [XRPL] saw a spike in quarterly user demand between January and March, Messari found in a new one report.
In its report titled ‘State of XRP Ledger Q1 2024’, the onchain data provider found that during the 90-day period, demand for
The average daily number of addresses that completed at least one transaction on the blockchain during the quarter totaled 41,000. This represented a 37% increase from the 30,000 recorded average daily active addresses on XRPL in the last quarter of 2023.
The increase in the number of active addresses on the blockchain resulted in an increase in the number of transactions performed on it in the first quarter. According to Messari, average daily transactions on the network increased by 113% during that period.
Interestingly, there was a decline in the number of new addresses created on XRPL during the quarter under review. According to Messari:
“This QoQ decline is due to the unusually high number of addresses created in the fourth quarter when enrollment activity began. On an annual basis, the number of new addresses increased quarterly by 29.8% between the first quarter of 2023 and the first quarter of 2024. The number of removed addresses increased by 55.9% quarterly to 33,000. The removals came as inscription activity declined.”
However, this had no impact on the network’s quarterly revenue. Between January and March, XRPL’s revenues in dollar terms totaled $205,000, up to a yearly high.
The network’s revenue, valued in its native token XRP, amounted to 350,000 XRP, up 10.3% during the quarter under review.
Source: Messari
XRP yields profits, but…
At the time of writing, XRPL’s native token, XRP, was trading at $0.52. According to CoinMarketCaps According to data, the altcoin has lost 2% of its value in the past seven days.
This is due to the steady decline in demand from market participants. The token’s daily active address, measured using a seven-day moving average, has fallen 12% over the past week, per Santiments facts.
Realistic or not, here is the market cap of XRP in terms of BTC
This drop in demand for XRP has occurred amid the sharp increase in the daily profit-to-loss transaction volume ratio during the reporting period.
Source: Santiment
At the time of writing, this ratio was 1.34, indicating that for every XRP trade that ended in a loss, 1.34 trades produced a profit.