XRP Ledger Daily Payment Volume Soars 350%, Hitting 2 Million Transactions
May 28 2024 - 11:00PM
NEWSBTC
As a recent Messari report outlined, the XRP Ledger (XRPL)
showcased notable progress during the first quarter of 2024. The
decentralized public blockchain, which facilitates the transfer of
XRP, fiat currencies, and other digital assets, has demonstrated
substantial activity. XRP Ledger Burn Rate Slows Amid Low Fees
During Q1 2024, XRP, the native token of the XRPL, secured its
position as the sixth largest cryptocurrency by market
capitalization, reaching $34.1 billion (currently $29M). Despite a
slight price decrease, XRP’s circulating market cap witnessed a
1.3% growth quarter-over-quarter (QoQ). Related Reading: Forget
Fear, Embrace Greed? Bitcoin Soars As Sentiment Turns Red Hot The
XRPL employs a deflationary mechanism by systematically burning
transaction fees. This process exerts downward pressure on the
total supply of XRP, which stands at 100 billion tokens.
Since the inception of the XRP Ledger, approximately 12 million XRP
have been burned. However, the low burn rate during Q1 can be
attributed to the network’s relatively low transaction fees (less
than $0.002 per transaction). Additionally, 1 billion XRP is
released from escrow to Ripple each month, with any unutilized
tokens being placed into new escrow contracts. This pattern will
continue until the remaining approximately 45 billion XRP becomes
liquid; at this point, the deflationary pressure from burned fees
will be the primary variable affecting supply. While XRP’s price
decreased marginally 0.1% QoQ, lagging behind the overall crypto
market’s 63.0% increase, it rose 14.8% year over year (YoY).
Inscription-Fueled Transactions Propel XRPL Daily Payments The
report highlights that revenue in the XRPL is measured as total
fees collected by the network, which are subsequently burned,
contributing to the redistribution of wealth from transaction fee
spenders to XRP holders. Network activity showed significant
growth, with active addresses and transactions increasing by 37%
and 113% QoQ, respectively. A substantial portion of transaction
activity on the XRPL stemmed from inscriptions, a transaction type
popularized in early 2023. Over 30 million transactions were sent
to a single account by approximately 45,000 accounts engaged in
inscription-related activities. According to Messari, inscriptions,
facilitated by XRP Script, played a key role in driving the surge
in daily payments, which soared 350% QoQ to 2 million transactions.
Related Reading: $2.9 Billion In Mt. Gox Bitcoin On The Move For
The First Time In 5 Years, Where Is It Headed? Lastly, the report
notes that the XRP Ledger blockchain witnessed a net increase of
150,000 accounts, driving the total number of accounts up by 3.1%
to 5.15 million in Q1. However, new addresses decreased 12.4% QoQ
to 183,000, primarily due to the high number of addresses created
in Q4, coinciding with the inception of inscription activity.
As of press time, XRP is valued at $0.5279, down 2.5% in the past
24 hours and 3.5% in the past seven days, which is in line with the
broader market trend. Featured image from Shutterstock, chart
from TradingView.com
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