Activity on the XRP Ledger, a decentralized public blockchain designed for quick, cost-effective real-time transfer of XRP, fiat currencies and other digital assets, has slowed considerably since the first quarter.
The number of payment transactions, representing the transfer of value from one account to another, dropped to 320,747 at press time, the lowest since October and significantly down from the average of over 1 million observed through March, April, and early May, according to data source XRPScan.
STORY CONTINUES BELOW
The number of active addresses also fell under 10,000, also the lowest since October. Meanwhile, the number of XRP burned as fees dropped to a multi-month low of 1,500 XRP, coinciding with a slowdown in the creation of new accounts. Account creators need to deposit 1 XRP, which can be reclaimed following the deletion of the account.
The slowdown follows an impressive first quarter during which payment transactions surged by an impressive 36% on a quarter-on-quarter basis, according to data tracked by Messari. Meanwhile, active addresses registered a 142% growth.
The Messari report was optimistic about XRP Ledger’s prospects, citing an increase in institutional adoption through strategic partnerships and acquisitions.
In April, Ripple, which leverages the XRP Ledger to provide payment solutions, Hidden Road, making it the first crypto company to own and operate a global, multi-asset prime broker.
Early today, Ripple’s enterprise-grade RLUSD stablecoin received the green light from the Dubai Financial Services Authority (DFSA), opening doors for its use in the Dubai International Financial Centre (DIFC).
More announcements could hit the wires next week during Ripple’s XRP Ledger Apex 2025 event, which will take place in Singapore from June 10 to 12.
Bitcoin, the leading cryptocurrency by market value, recently rose to new lifetime highs above $110,000, marking a surge of over 40% from its early April lows near $75,000.
The stellar recovery also lifted the broader market higher, with XRP jumping from $1.60 to $2.60, a 62% increase, according to CoinDesk data. However, the rally in the payments-focused token has stalled since then, falling well short of its peak of around $3.40 registered in January when BTC set its then-lifetime peak of $109K.
The divergence indicates that XRP is not benefitting from bitcoin’s new highs the same way it did earlier this year. It could be a sign of waning demand for XRP, suggesting caution, as a potential downturn in Bitcoin could weigh heavily on XRP’s price.
