Wenry Seoul, a leading analyst at CryptoQuant, recently conducted a comprehensive analysis of the on-chain activity of XRP Ledger, revealing a mix of metrics.
The analysis, which focused on the period between September 15 and October 15, indicates that despite the common belief that XRP Ledger is not as popular among retail investors compared to other major Layer 1 networks, its transaction volume remains competitive.
The report provides a detailed breakdown of various on-chain metrics, including token activity, NFT trading, and automated market maker (AMM) liquidity.
XRPL Basic On-Chain Metrics Show Varied Signals
The report highlights a combination of results when it comes to XRP Ledger’s basic metrics. The creation of new wallets increased by 10.39%, resulting in 18,321 new accounts. Additionally, active accounts surged by 14.19%, with 10,887 users engaging with the network on a daily basis.
However, total transactions declined by 17.57%, with the ledger processing 18.82 million transactions, while payments dropped even further by 26.16% to 6.81 million. This discrepancy between user engagement and transaction volume suggests that fewer transactions are being made per account, while more wallets are being created.
AMM Liquidity Provision
One of the standout metrics from the report is the growth in automated market maker (AMM) liquidity provision. AMMDeposit activity rose by 62.35%, while AMMCreate surged by 143.10%, indicating that users are increasingly providing liquidity to the decentralized pools of XRP Ledger.
This is further supported by a 65.22% increase in AMMVote, which reflects active participation in governance. Despite an 81.82% drop in AMMBid, the rise in deposits suggests a strong confidence in the existing XRPL liquidity pools.
It is worth noting that the AMM functionality on the XRP Ledger was launched in March. Since then, over 3,000 active pools have locked in approximately 14 million XRP. The total value locked in XRPL AMM pools is even more impressive, amounting to 26.9 million XRP, with 13.9 million consisting solely of XRP tokens.
Token Activity and DEX Volume on XRP Ledger
While token trades decreased by 6.83% to 6.41 million, decentralized exchange (DEX) activity showed a positive trend. Specifically, DEX volume increased by 17.64%, rising from $3.91 million to $4.60 million.
Meanwhile, XRP Ledger’s market cap experienced a significant decline of 15.24%, reaching $87.56 million. However, the number of listed assets saw a slight increase of 1.17%, indicating that developers and projects are still interested in launching new tokens on the XRP Ledger.
XRPL NFT Trading Activity Declines Across the Board
NFT trading activity on the XRP Ledger witnessed substantial declines. NFTokenMinting, a key indicator of new NFT creation, plummeted by 70.66%. Similarly, NFTokenAcceptOffer decreased by 30.88%, and NFTokenCreateOffer also declined by 33.30%.
Although there was a small uptick in NFTokenCancelOffer (+0.20%), the overall picture suggests that NFT activity on the XRP Ledger is currently experiencing a downturn.
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