The XRP Ledger (XRPL) has witnessed a staggering 80% surge in transaction volume over the past week, leaving many scratching their heads for the cause. This significant leap suggests a potential rise in network activity, and experts believe micropayments might be the driving force behind it.
Micropayments Powering the Surge
XPMarket CEO and Co-Founder, Wladimir Kirjakulov, first identified the unusual increase in XRP Ledger’s transactions per second (TPS) over the past two weeks. On July 8th, the network processed a total of 2.3 million transactions. By July 16th, that number had ballooned to a whopping 4.15 million, marking an impressive 80% growth.
While the exact reason for this surge remains unclear, some speculate it’s a consequence of a rise in new users on the platform. However, XRPscan, a popular XRP block explorer, offered a different perspective. Their data revealed that a significant portion of the transactions stemmed from micropayments.
XRPscan’s findings confirmed the micropayments theory. They discovered a high volume of XRP transfers ranging between 0.000043 XRP and 0.000045 XRP, all completed within seconds of initiation. This dominance of micropayments within the overall transaction volume shouldn’t diminish the significance of the growth. An 80% increase in just eight days is a remarkable accomplishment for the XRPL network.
XRPL Ecosystem Sees Broader Wins
Beyond the transaction surge, the XRPL ecosystem boasts other recent victories. The Automated Market Maker (AMM) feature, launched on the XRPL mainnet in Q1 2024, surpassed 10 million XRP last month. This signifies a growing adoption of XRP within the Decentralized Finance (DeFi) space.
A Q1 2024 market report by Ripple CEO Brad Garlinghouse elaborated on further achievements of the XRPL network. Notably, an amendment dubbed “fixAMMOverflowOffer” was introduced to address abnormal payment channels, effectively resolving a glitch discovered after the AMM engine launch.
Also Read: Ripple Defies IPO Delay With $1.4 Billion Stock Buyback: Betting Big On The Future Of XRP
XRP Whales Accumulate While Price Dips
Interestingly, on-chain data suggests an uptick in XRP accumulation by whales. These large investors have reportedly acquired over 139 million XRP from various cryptocurrency exchanges recently. However, despite the positive developments, XRP’s price currently sits at $0.5695, reflecting a 9.83% decrease over the past 24 hours. This highlights a potential disconnect between the transaction boom and the immediate price performance of XRP.
The recent surge in coin Ledger transactions is a positive indicator for the network’s growth. While the role of micropayments in driving this increase is yet to be fully understood, it signifies a potential rise in network activity. As the XRPL ecosystem continues to evolve with features like the AMM and essential amendments, the future of XRP remains promising.
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.
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