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XRP, the sixth-largest cryptocurrency by market cap, has seen an interesting trend in its transaction activity, despite some notable declines in other metrics.
A recent one analysis by a CryptoQuant analyst, Wenry, sheds light on the key trends within the XRP ecosystem and provides insight into the activities taking place behind the scenes. Notably, the analyst revealed where XRP transactions are used by category activity.
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XRP transactions: decline in NFT activity and increase in DEX volume
According to Wenry, XRP’s daily transaction volume is “competitive with large Layer 1 networks,” demonstrating that
In his analysis on the CryptoQuant QuickTake platform, Wenry highlighted that between September 15 and October 15, 2023, new wallet creations on the XRP Ledger increased by 10.39%, reaching a total of 18,321 new accounts.
However, the total number of transactions on the network fell by 17.57% to 18.82 million, and payments fell by 26.16% to 6.81 million. Despite these declines, the number of active wallets on XRPL has increased by 14.19%, indicating continued user engagement with the platform.
These numbers suggest that even though fewer transactions are being processed, the active user base continues to grow. Wenry’s analysis examined on-chain activity related to token trading and decentralized exchange (DEX) volume.
While the total number of transactions on the XRP Ledger fell by 6.83%, decentralized exchange volume increased by 17.64%, from $3.91 million to $4.60 million.
This shift suggests that despite a slight decline in overall trading, more activity occurred on decentralized platforms, demonstrating that there is still interest in decentralized finance (DeFi) solutions on the XRP Ledger.
Regarding non-fungible tokens (NFTs), the analysis showed a significant decline in NFT-related activity on the XRPL. NFTokenMint, which tracks new NFTs created on the network, fell 70.66%, from 65,021 to 19,076.
Similarly, NFTokenAcceptOffer, which represents the acceptance of offers to purchase NFTs, fell 30.88%. Despite these declines, NFTokenCancelOffer, a metric that tracks canceled NFT transactions, rose slightly by 0.20%, indicating that while fewer NFTs were minted or traded, some stability remained in the broader NFT ecosystem.
SMP liquidity and increased participation
A major highlight of the analysis was the strong growth in Automated Market Maker (AMM) liquidity on the XRP Ledger. AMM-related metrics saw a significant increase: AMMDeposit rose 62.35%, AMMCreate rose 143.10%, and AMMWithdraw rose 42.97%.
These increases reflect increasing confidence in the liquidity pools on the XRPL as more participants provide liquidity and create new pools. The increase in AMMCreate, which has risen from 58 to 141, suggests that more users are participating in the liquidity provision on the network.
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However, one area where AMM-related activity fell was AMMBid, which fell 81.82%. Despite this decline, the overall increase in liquidity deposits and the creation of new pools indicate that XRP Ledger’s decentralized liquidity offering remains strong.
According to Wenry, these numbers highlight the growing confidence in existing liquidity pools and the broader AMM ecosystem on the XRP Ledger.
Featured image created with DALL-E, Chart from TradingView
