Despite XRP’s lackluster price performance, on-chain activity on the XRP Ledger (XRPL) has experienced a surge to its highest levels in months as users regain interest in the blockchain.
When compared to other high-caliber cryptocurrencies, XRP has recently underperformed. Despite improvements in the overall market sentiment, XRP has seen the smallest gains among the top eight cryptocurrencies.
In fact, XRP is the only asset in the top eight that has experienced a month-over-month price decline. While coins like Bitcoin, Ethereum, and Solana have increased by at least 5%, the native token of XRPL has dropped by almost 6%, primarily due to the collapse earlier this month following the SEC’s appeal notice in the Ripple case.
This lackluster price movement is a clear indication of the regulatory issues that have arisen from the ongoing legal battle. The SEC’s decision to renew the case has further contributed to the suppression of XRP’s price.
However, despite these challenges, the XRP Ledger has seen a recent spike in on-chain activity, signaling a renewed interest from investors. Data from Santiment reveals that investor traction has returned to XRP and its underlying network, resulting in a significant increase in usage to multi-month highs.
On Friday, the XRP Ledger witnessed approximately 35,799 active wallet addresses, the highest number since July 16. This indicates an 80% increase in active users making at least one transfer on the network compared to the previous day when there were less than 20,000 addresses.
Moreover, the rise in user presence has coincided with a surge in new addresses being created on the XRP Ledger. Over 3,858 new users have created wallet addresses on the blockchain, suggesting a growing adoption rate. It’s worth noting that the XRPL requires a reserve of 10 XRP for each new wallet to prevent spam accounts.
The last time new users registered on the network in such significant numbers was on March 14, approximately seven months ago. Notably, this surge in activity on Friday followed a substantial increase on Thursday, with over 3,000 new wallet addresses being created on that day as well.
Despite the recent increase in on-chain activity, it has yet to impact XRP’s price. However, the community remains optimistic about a potential uptrend. Community sentiments on CoinMarketCap show an 85% bullish sentiment towards the seventh-largest cryptocurrency.
Market analysts have also disregarded the recent underperformance and have predicted ambitious price movements for XRP. For example, expert Egrag predicts that XRP will target $1.4679 after breaking out of its current range before surging to $7.5. Pundit Bobby A speculates a surge to $4 or $6, citing XRP’s resilience in the face of the SEC’s notice of appeal. He notes that XRP’s ability to stay above $0.51 after the filing could push the price higher.
Currently, XRP is trading at $0.55, representing a 1% increase in the past 24 hours.
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