Fintech company Ripple released its Q1 2024 report, highlighting significant growth in the XRP Ledger (XRPL) ecosystem and its native token, XRP. The report details a surge in transaction volume and overall network activity, showcasing increased adoption and utility for XRP.
XRP Ledger: Increased Network Activity
One of the key takeaways from the report is the substantial rise in XRP transaction volume. Spot volumes for XRP grew by an impressive 40% compared to Q4 2023, reaching $865 million in Q1 2024.
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This growth is further supported by a significant increase in daily average XRP derivatives open interest, which climbed from $460 million in Q4 2023 to $500 million in Q1 2024. The strong correlation between spot volumes and open interest indicates active trading and robust utilization of XRP across various platforms.
On-Chain Transactions Surge, Transaction Fees Decrease
The report also reveals a significant uptick in on-chain transactions on the XRPL. Compared to Q4 2023, the number of on-chain transactions using XRP surged 108%, reaching 251,397,881 in Q1 2024. This growth is accompanied by a positive development for users – a 44% decrease in the average transaction cost.
The average cost per XRP transaction dropped from 0.00262 in Q4 2023 to 0.00147 in Q1 2024. This decrease can be attributed to the normalization of transaction fees following extensive testing of inscriptions on the XRPL in December 2023.
XRP Burn Rate Increases Alongside Growing Network Activity
The report highlights another metric indicative of rising network activity – the amount of XRP burned for transaction fees. The total XRP burned for fees increased by 101% from Q4 2023, reaching 636,184 in Q1 2024.
This statistic reflects the growing number of transactions occurring on the XRPL, further solidifying its position as a viable platform for efficient and cost-effective payments.
XRP Price and Other Developments
While the report emphasizes positive growth in network activity, it also acknowledges a 5% decline in the XRP price over the last quarter. Additionally, the number of new wallets created on the XRPL saw an 11% decrease compared to Q4 2023.
The report sheds light on Ripple’s XRP holdings, categorized into two sections: readily available XRP in its wallet and XRP subject to a pre-defined on-ledger escrow with monthly releases over the next 42 months. As of March 31, 2024, Ripple held 4,836,166,156 XRP in its wallets, with a significantly larger amount (40,100,000,005 XRP) locked in escrow for a gradual release.
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Overall, Ripple’s Q1 2024 report paints a picture of a maturing XRP Ledger ecosystem with demonstrably increased network activity and transaction volume. The surge in on-chain transactions, coupled with a decrease in transaction fees, shows the growing adoption of XRP for real-world use cases.
While the report acknowledges a price decline and a decrease in new wallet creation, the focus on core network growth suggests a strong foundation for future development.
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