In the current year, the XRP Ledger (XRPL) has experienced a significant surge in network activity alongside the broader market recovery. According to the latest report from Messari, active addresses on the XRPL increased by 37% quarter-over-quarter (QoQ), while transactions saw a substantial increase of 113% QoQ. This surge in activity can be attributed to a concentrated group of around 45,000 accounts, which collectively sent over 30 million transactions to a single account, primarily for inscription-related activities.
Despite the high transaction volumes, the XRPL demonstrated remarkable resilience by handling over 80 transactions per second for an entire day without encountering any network issues, as per Messari’s findings. The total number of accounts on the XRPL also saw a growth of 150,000, accounting for a 3.1% increase to reach a total of 5.15 million. While there was a decrease in new addresses by 12.4% QoQ, mainly due to a surge in Q4 during inscription activities, there was a significant 29.8% annual increase from Q1 2023 to Q1 2024.
Impact of Inscription Activities
The surge in active addresses, particularly the 92% QoQ rise in unique senders, indicates the significant impact of inscription activities on the XRPL network. It is noteworthy that unique senders surpassed unique receivers for the first time since Q1 2022, showcasing the growing influence of inscription-related transactions on the network.
The total market cap of fungible tokens, referred to as Issued Currencies, experienced a 16% decrease QoQ, amounting to $142 million. Among the vast array of assets listed on the XRPL, Sologenic (SOLO) emerged as the leading token, constituting 42% of the total market cap. The top three tokens collectively represented 65% of the market cap, indicating a high level of concentration among a few select assets.
Stablecoins on the Rise
Stablecoins and wrapped tokens have gained significant popularity on the XRPL network, especially when measured by the number of holders in comparison to other tokens. Gatehub and Xumm have partnered to offer 14 digital assets on the XRPL, emphasizing the growing prominence of stablecoins in the ecosystem. Despite this, stablecoins on the XRPL have not yet achieved the adoption levels of major stablecoins on other networks such as Tether’s USDT or Circle’s USDC.
With Ripple’s recent announcement of launching a USD-pegged stablecoin on both the XRPL and Ethereum, leveraging native XRPL functionality and ERC-20 token standards respectively, there is a potential for significant growth and adoption of stablecoins on the XRPL network. The stablecoin will be fully backed by US dollar deposits, short-term US. treasuries, and other cash equivalents, with monthly third-party attestations. This strategic initiative by Ripple could potentially trigger a liquidity event and further enhance the XRPL network’s position in the digital asset space.
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