The XRP Ledger, supported by Ripple, witnessed a notable decline in transaction volume during the second quarter of 2024, as outlined in the latest XRP Report. This downturn aligns with a broader pattern observed across significant blockchain protocols. Specifically, XRPL registered 86.39 million transactions, marking a 65.6% decrease from the previous quarter. Despite the drop in volume, the network’s average transaction fees surged by 168% to 0.00394 XRP.
What’s Happening on the XRP Front?
XRP’s transaction volume fell by 20% in the second quarter, paralleling trends in Bitcoin and Ethereum. However, spot trading volumes for XRP remained robust for most of the quarter. Major exchange Binance led the trading volumes, with Bybit and Upbit also contributing significantly. Notably, trading against fiat currencies decreased to 10%, with most transactions involving stablecoins. Ripple interprets this positively, especially with the forthcoming launch of the USD Stablecoin later this year.
Meanwhile, Ripple maintains an optimistic outlook for XRPL’s future. The firm anticipates increased network activity due to imminent updates. Key developments include partnerships with Archax, a regulated exchange and custodian, and OpenEden, which could introduce substantial tokenized real-world assets to XRPL.
Details on the Subject
Ripple also spotlighted several upcoming innovations. These include the XRPL Ethereum Virtual Machine (EVM) sidechain, Axelar interoperability, and a new Oracle and Multi-Purpose Token (MPT) standard. These advancements are expected to propel XRPL’s growth in the upcoming quarters. Ripple President Monica Long expressed enthusiasm for the progress, emphasizing the potential of tokenized real-world assets and the new standards.
Inferences and Insights
Key takeaways from Ripple’s strategies and market dynamics:
- XRP trading is increasingly conducted against stablecoins rather than fiat currencies.
- Upcoming integrations and updates could significantly boost XRPL’s network activity.
- Innovations such as XRPL’s EVM sidechain and new standards are set to drive future growth.
In a separate matter, Ripple is awaiting a judicial decision in its prolonged case with the U.S. Securities and Exchange Commission (SEC). The company is hopeful for a fair outcome regarding resolutions related to institutional XRP sales.