In the first quarter of 2024, the XRP Ledger (XRPL) experienced a remarkable increase of 113% in daily transactions, totaling 2.7 million, according to a study conducted by crypto analytic firm Messari. The study highlighted the overall surge in network activity on XRPL during Q1.
One of the most significant positive metrics observed was the average daily transactions and active addresses. In Q4 2023, the daily transactions averaged at 1.3 million, but this number saw a substantial 113% increase, reaching 2.77 million in Q1 2024. Similarly, the average daily active addresses rose by 37%, from 30,000 in Q4 2023 to 41,000.
Messari’s analysis revealed that a significant portion of the transaction activity on XRPL originated from a limited number of accounts sending transactions to a single recipient. Approximately 45,000 accounts were responsible for directing over 30 million transactions to one account, primarily for activities related to inscriptions.
Inscriptions refer to NFT-related transactions that gained popularity on the Bitcoin network in early 2023 and have since spread to various major networks. These activities sometimes lead to network outages due to the high volume of activity. However, XRPL experienced no disruptions during the peak inscription activities in December 2023, reaching over 80 transactions per second sustained throughout the day, with a total of 6.9 million transactions. XRP Script was credited as the main driving force behind this surge in inscription activity on the network.
The report also revealed that the net count of XRPL accounts increased by 150,000, resulting in a 3.1% rise in the total number of accounts to 5.15 million in the first quarter. However, there was a 12.4% decline in the creation of new addresses compared to the previous quarter, which the report attributes to the unusually large number of addresses generated in Q4 2023.
In terms of year-over-year growth, XRPL saw a 29.8% increase in new addresses from Q1 2023 to Q1 2024. Additionally, there was a 55.9% quarter-over-quarter rise in account deletions, totaling 33,000, which coincided with the decline in inscription activity.
The significance of account creations and deletions on XRPL is unique compared to other networks because accounts require a deposit for creation, which can be recovered upon account deletion. This feature makes the account metrics on XRPL more indicative of genuine activity, unlike other networks where accounts can be created in mass at no cost, potentially leading to spam or Sybil attacks.
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