CryptoQuant community analyst Maartunn recently shared data indicating that the XRP Ledger’s velocity has increased in recent weeks, signaling heightened activity within the network. Velocity, which is calculated by dividing a crypto market cap by its transaction volume, has been on the rise, suggesting frequent network usage. This uptick in velocity could potentially foreshadow a price surge for XRP in the near future.
The XRP Ledger’s velocity is approaching a resistance level on a descending trendline, indicating a growth in usage and the potential for a price increase. This growth in velocity comes on the heels of XRP’s significant price jump following the outcome of the US elections, with the token surging from $0.5319 on Nov. 6 to a peak of $2.82 on Dec. 3 — a remarkable 430% increase in less than a month.
Despite the increase in velocity, the total deposited in the XRPL blockchain has been declining since Dec. 16, dropping from $71.5 million to $58 million as of press time, according to data from DefiLlama. This represents a nearly 20% decrease in total deposits. XRPL’s total value locked is tied to the automated market maker (AMM) pools on the blockchain, with an additional $5 million in tokenized treasury bills issued by Open Eden circulating on XRPL.
Ripple Labs, the company behind the XRP Ledger, recently introduced its stablecoin, Ripple USD (RLUSD), which is issued using both the XRP Ledger and Ethereum. The launch of RLUSD aims to provide a regulated token pegged to the US dollar, potentially driving growth within XRPL. This growth could be fueled by traditional companies tokenizing real-world assets on XRPL, creating a liquidity stream through RLUSD.
Bitwise estimates that the market for tokenized real-world assets could reach $3 trillion in the future, with Ripple’s partnership with Archax to launch a money market fund managed by abrdn already positioning them in this market. These developments have the potential to further increase XRPL usage and velocity, propelling the network forward.
In conclusion, the rise in XRP Ledger velocity, coupled with the introduction of RLUSD and partnerships within the tokenized real-world asset market, indicates a promising future for XRPL and its potential for growth in the evolving Web3 landscape. Stay tuned for further updates on XRPL’s development and utilization in the crypto space.