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as per latest reports According to research firm, Messari, XRP Ledger (XRPL) saw a significant increase in activity during the first quarter of 2023. Daily active addresses and daily transactions grew by 13.9% and 10.7% QoQ, respectively.
XRP price also saw an impressive 56% quarter-on-quarter (QoQ) increase from $0.35 to $0.54. Due to positive news regarding the ongoing case between Ripple and the Securities and Exchange Commission (SEC), the price outpaced the total crypto market cap over the same period.
XRP Ledger Network Activity Increases
XRP Ledger is a blockchain network operating for over a decade. It is known for its fast and energy-efficient cross-border payment capabilities, among other features.
It offers a variety of native capabilities, including issued currencies, a decentralized exchange, escrow functionality, and token management. These features allow XRPL to perform many of the same functions as other networks, even though it does not support smart contracts.
The chart above shows that XRPL has seen a significant increase in overall network activity metrics in Q1. Daily active addresses and transactions grew by 13.9% and 10.7%, respectively. The increase in total active addresses was largely due to addresses growing 17.1% from 47,000 to 55,000. However, sending addresses decreased 7.2% QoQ, further separating the metric from receiving addresses.
Despite 141,000 accounts being deleted in Q1, there was an increase in total addresses. This is because, unlike many other blockchain networks, XRPL allows the deletion of accounts to retrieve the XRP deposits that were deposited during account creation. This encourages the removal of escrow accounts, and the total address metric is of greater importance.
According to the report, XRPL applies deflationary pressure to the total supply of 100 billion XRP by burning transaction fees. However, only around 10 million XRP have been destroyed since the inception of XRPL. To counteract this burn rate, 1 billion XRP is held in Ripple per month. Any XRP not spent or distributed by Ripple that month is returned to escrow. This system will continue until the remaining 48 billion XRP are liquidated.
Unlike many other cryptocurrency networks, XRPL does not distribute rewards or transaction fees to validators. Instead, validators are incentivized by supporting the decentralization of the network. It is similar to full nodes for Ethereum/Bitcoin instead of validators/miners.
NFT Markets conforms to the XLS-20 standard
XRPL standardized NFTs on its network with the XLS-20 standard enabled in October 2022. Created five new transaction types to accurately track all NFT activity on the network. However, NFT mints declined 40.4% QoQ to 436,000 in Q1 from 732,000 in Q4, while NFT offers declined 25.1% QoQ from 370,000 in Q4 to 277,000 in Q1.
Furthermore, in NFT sales volume, XPUNKS remained the all-time leader with 15.7 million XRP ($8.5 million as of Q1). However, Core Apps Club and Ripplepunks rivaled XPUNKS in sales volume in the first quarter, each collecting 400,000–500,000 XRP in quarterly volume. RipplePunks averaged 141,000 XRP ($76,000) in monthly sales volume, with 960 monthly sales in the first quarter.
Overall, XRPL’s deflationary mechanism consuming transaction fees and focus on decentralization and trust between nodes through unique node lists are key factors in its success. As the network continues to grow and develop, the core capabilities of the platform are likely to see further growth and innovation.
Featured image from iStock, chart from TradingView.com
