The XRP Ledger (XRPL) has seen a steady increase in hosted wallets in recent months, with 16,721 new wallets added in the past 16 days alone. This brings the total number of wallets on the XRPL to 4,814,370.
This growth is likely due to a number of factors, including the increasing popularity of XRP, the development of new applications on the XRPL, and the ongoing Ripple v. SEC case.
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However, it is important to note that the XRPL has experienced similar periods of growth in the past, only to see the number of active wallets decline again. For example, in early 2018, the XRPL had over 5 million wallets. However, by the end of that year, the number of active wallets fell to around 3 million.
One reason for this may be that many new users create wallets on the XRPL but then never use them again.
Another reason may be that the XRPL is not as user-friendly as some other blockchains. For example, XRP users need to create a special XRP wallet in order to store and use their tokens. This can be a barrier to entry for new users.
Despite these challenges, the XRPL remains one of the most popular blockchains for cross-border payments.
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Is the Growth Sustainable?
It is too early to say whether the current growth in wallet count on the XRPL is sustainable. However, there are a few factors that suggest it may be.
First, the average of 1,400 new daily wallets since the start of October suggests that there is genuine interest in the network. This is particularly encouraging given the ongoing Ripple v. SEC case.
Second, the fact that the largest daily address spike this year occurred in July when XRP’s price rallied to $0.93, suggests that there is some speculative interest in the XRPL as well. However, it is important to note that speculative interest can be volatile and could lead to a decline in wallet count if the price of XRP falls.
Overall, the recent growth in wallet count on the XRPL is a positive sign. However, it is important to be cautious and to monitor the number of active wallets over time to see if the trend continues.
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