XRP may not be shining in terms of price, but activity on the XRP Ledger (XRPL) has soared to its highest levels in months as users flock back to the platform. While XRP has struggled compared to its peers—remaining the only major cryptocurrency among the top eight to post a month-over-month decline—other coins like Bitcoin, Ethereum, and Solana have all gained at least 5%. This downturn follows a dip in price after the SEC’s recent appeal in the ongoing Ripple case, which has cast a shadow over the asset.
However, despite these challenges, the XRPL is experiencing a resurgence in on-chain activity, indicating renewed investor interest and engagement, according to data from Santiment.
Let’s dive in to know more!
Significant Surge in Wallet Activity
Recent insights from Santiment reveal a remarkable spike in wallet activity on the XRP Ledger. On one day alone, 35,799 unique wallets were involved in making transfers, marking the highest level of activity in over 3 months. This surge indicates that more users are engaging with the XRP network. Plus, there were 3,858 new wallets created daily, the highest rate seen in over 7 months. This influx of new wallets suggests an increasing interest in XRP and its potential applications.
Importance of Daily Active Addresses
Daily active addresses are important to measure user engagement and the overall health of the XRP network. The rise in active addresses throughout Q4 2024 shows that more users are adopting the XRP Ledger. Interestingly, the increasing number of daily transactions also highlights that the XRP Ledger is becoming more popular for a variety of activities, positioning XRP as a strong contender in the crypto market.
The Launch of RLUSD
The key factor driving the recent surge in wallet activity is Ripple’s introduction of its new stablecoin, RLUSD, on both the XRP Ledger and Ethereum networks. In the first phase, 385 RLUSD tokens were minted—185 on the XRP Ledger and 200 on Ethereum. This stablecoin is pegged to the U.S. dollar (1 RLUSD = 1 USD) and is supported by a combination of dollar deposits, short-term U.S. government bonds, and cash. To ensure fair practice, its reserves are audited monthly.
Looking Ahead: What’s Next for XRP?
Despite XRP’s price not reflecting the recent spike in on-chain activities, the community is feeling hopeful about a future price increase. According to market sentiments, a whopping 85% of users are bullish on XRP, which is currently the seventh-largest cryptocurrency. Recently, Arthur Kirjakulov, CEO of XPmarket, has said that there are majorly 10 wallets that account for 58% of all transactions, with just one wallet alone representing 15%. However, he cautioned using this info as many major wallets may not be linked directly with Ripple.
However crypto analysts like Egrag predict that XRP could hit $1.4679 after breaking out of its current range, eventually aiming for $7.5. Another analyst, Bobby A, believes XRP could rise to $4 or $6, especially since it hasn’t dropped below $0.51 following the SEC’s notice of appeal. As of now, XRP is trading at $0.55, having gained over 1% in the last 24 hours.
