- The increase in development activity had little to no effect on the price of XRP.
- A good buying opportunity may have arisen, on-chain data shows.
Development activity on the XRP Ledger (XRPL) improved after an initial decline on April 13.
Using on-chain data provided by Santiment, AMBCrypto found the metric dropped to 0.28 before recently recovering to 0.49.
XRPL is the decentralized public blockchain that allows the transfer of XRP, fiat currency and a few other digital assets.
When development activity increases, it means that the work done to ensure the proper functioning of the ledger has improved.
Dedication does not equal higher prices
On the other hand, a decrease in development activity indicates a decrease in the number of public GitHub repositories. Therefore, this increase implied that features were shipped to retain a good record of XRP transactions.
But did this affect the price of the token? At the time of writing, the price of XRP was $0.50, almost the same value as 24 hours ago.
Source: Santiment
Historically, upgrades on the ledger have hardly driven the token’s price action. Sometimes the price of XRP rises when the benchmark jumps.
Other times the price stalls or falls. In the meantime, AMBCrypto looked at some other things happening on the network. The next indicator we checked was active addresses.
This metric tracks the level of user transactions. An increase in active addresses implies that successful transactions have increased.
Meanwhile, a decrease in the metric suggests that participation in sending or receiving tokens is on the low side.
Network activity in the ledger decreases
At the time of writing, the 24-hour active addresses on the XRPL had fallen to 16,600. This implied that the number of addresses involved in interacting with XRP had decreased.
Evidence of this appeared in the one-day print run. According to Santiment, XRP’s single-day circulation was 132.28 million.
A notable drop of over 1 billion on May 1 suggests that traders are avoiding the cryptocurrency like a plague.
Source: Santiment
However, this could be good news for those who plan to hold the token in the long term. This is because some forecasts expect XRP to reach $3 this cycle.
If so, buying at the $0.50 price point could be a bargain. At the same time, there is no guarantee that the price will achieve the above goal.
In addition, we checked if holders of the token are considering collecting the token at the current price. To do this, AMBCrypto looked at the balance of addresses.
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At the time of writing, those who had 1 to 100 XRPs increased the number of tokens they had. However, it was not the same for the 1000 to 1 billion coin cohort.
Source: Santiment
From our observation, this group has reduced the value of XRP. Therefore, it appears that retail participants were bullish on XRP in the short term. The same cannot be said for the major players in the market.