The XRP Ledger (XRPL) experienced a significant decline in on-chain transaction activity in the second quarter of 2024, which indicates a considerable movement away from the previous quarter. According to Ripple’s latest second quarter 2024 XRP Markets Report, XRPL transactions decreased by 65.6%, with only around 86.38 million transactions counted in Q2, down from 251.39 million in Q1.
Ripple recently reported that “Activity across most major protocols decreased in Q2. XRP Ledger was no exception, with on-chain activities noticeably lower in Q2 as compared to Q1,” This decline in activity was simultaneous with a spike in transaction fees, which shot up by 168% in the third quarter to 0.00394 XRP per transaction with the help of measures directed to defense against spam.
XRP Ledger Transaction Decline
This downturn created a huge difference in Q1 2024, when the number of transactions on the XRPL more than doubled from Q4 2023, as shown by a 108% increase. The average transaction cost is almost halved, testifying that the network efficiency has improved and that few people use it.
Despite the recent drop in transactional movement, XRP keeps high hopes for XRP Ledger back. The company thinks that digital asset exchange Archax will bring “hundreds of millions of dollars” worth of tokenized Real-World Assets (RWA) onto the XRPL in the coming year. Besides, XRP confirmed its plan to release Ripple USD, a stablecoin backed by US dollar pledges, temporary US government treasuries, and other cash counterparts, later in 2024.
OpenEden recently presented tokenized United States Treasury bills (T-bills) on the XRPL, backed by short-term US government T-bills and reverse repurchase agreements collateralized by US Treasurys, in addition to the XRPL’s ecosystem. The purpose is to improve the XRPL’s competitiveness in terms of tokenization.
Ripple’s report and other updates give insight into the ongoing advancements despite declining transaction volumes. The development of the XRPL and Ripple’s strategic plans, which included the financial apps, showed their large potential.
The XRP ledger faces challenges when costs are rising, and activity is slowing down, which is why the Q2 2024 performance shows such a scenario. Nevertheless, Ripple’s proactive approaches and collaborations indicate a strong XRPL forecast for the constantly changing digital asset environment.
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