Key Metrics Suggest A Bright Future For The Third Biggest Crypto
As of the end of the third quarter of this year, XRP, the native token of the XRP Ledger (XRPL), has solidified its position as the seventh-largest cryptocurrency by market capitalization, reaching approximately $34.7 billion.
This represents a significant increase in sales of 31.1% Circulation market value Quarter-over-quarter (QoQ) compared to the second quarter. XRP price also increased significantly by 28.5% during the same period.
However, with President-elect Donald Trump’s recent victory and a clearer outlook for U.S. regulation, those indicators have fallen short, with gains over the past three weeks the largest in nearly seven years.
XRP daily trading volume surges 94%
Research firm Messari and its third quarter Report suggest that the recent momentum can be attributed to several key developments. Most notably, asset management firm Grayscale launched the XRP Trust in September, offering accredited investors a new way to gain access to XRP investments.
This development and the S-1 petition exchange traded funds (ETF) issuers Bitwise, Canary, 21Shares and WisdomTree have launched XRP ETFs in recent months, underscoring growing institutional interest in the token.
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In the third quarter, several key network metrics reversed previous downward trends. Average daily transaction volume surged 94% month-on-month to 1.7 million, and new addresses increased 10% to 105,000.
However, this growth was primarily driven by microtransactions (transactions involving less than 1 XRP), which Ripple’s report noted were linked to spam activity. It is worth noting that this increase new address By comparison, quarterly new addresses fell 34% year over year from the third quarter of 2023 to the second quarter of 2024.
While some metrics were up, the total number of active addresses fell 3% month-on-month, due to a 20% decrease in active sending addresses and a 7% increase in unique receiving addresses.
Prices near 2018 all-time high
Payment transaction volume also showed significant growth, rising 110% quarter-on-quarter after declining in the previous two quarters. The surge follows a major spike related to registration activity that began in late 2023.
also payment transactionNFT-related activities on XRPL have also seen significant changes. NFT minting and burning transactions increased by 93% and 148% respectively, while NFT creation and offer acceptance transactions declined slightly.
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Still, if you dig deeper into the Q4 data, XRP had its most significant uptrend in years, with its market capitalization surging by nearly $130 billion in just three weeks, making it the The third largest digital asset In the market, it is second only to Bitcoin (BTC) and Ethereum (ETH).
Its price has apparently followed suit, rising a massive 432% over the past few weeks and currently trading at $2,71 per coin, close to the all-time high of $3,040 set during the 2018 bull run, and now just 20 currently The percentage difference between price and all-time high.
Overall, the partial data from Q3 and Q4 paint a picture of a growing and evolving XRP ecosystem, characterized by increased trading activity, institutional interest, and a commitment to improving XRP’s value proposition.
Featured images from DALL-E, charts from TradingView.com
