Ripple’s Q2 2024 XRP Markets Report reveals a sharp decline in XRP Ledger (XRPL) transaction activity. The platform saw a staggering 65.6% drop in on-chain transactions from Q1 to Q2, with only 86.38 million transactions recorded compared to the previous quarter’s 251.39 million. This downturn coincides with a substantial 168% surge in average transaction costs to 0.00394 XRP.
Ripple attributes the increased fees to a necessary measure to protect the peer-to-peer network from spam. While this mechanism aims to maintain network stability, it has inadvertently discouraged transaction volume. The trend represents a stark reversal from Q1, which saw a 108% increase in transactions and a 45% decrease in fees.
Despite the current transactional challenges, Ripple remains optimistic about the XRPL’s future. The company anticipates a significant influx of tokenized Real-World Assets (RWA) through its partnership with Archax, potentially bringing in hundreds of millions of dollars in the coming year. Additionally, the impending launch of Ripple USD, a stablecoin backed by US dollar deposits and government securities, is expected to boost XRPL activity.
The XRP ecosystem is also expanding with the recent integration of tokenized United States Treasury bills (T-bills) by OpenEden. These T-bill tokens are backed by short-term US government T-bills and subject to rigorous KYC and AML procedures.
Also Read: Valour’s XRP and XDC Staking Products Could Spark Institutional DeFi Boom
While the Q2 report highlights a temporary setback, Ripple’s strategic initiatives and the broader industry’s focus on tokenization suggest a promising outlook for the XRPL. The platform’s ability to adapt to changing market conditions and regulatory landscapes will be crucial in determining its long-term success.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
