The XRP Ledger (XRPL) has witnessed a notable increase in hosted wallets in recent months, with a remarkable surge of 16,721 new wallets added in just the past 16 days. This boost brings the total number of wallets on the XRPL to 4,814,370. While this growth can be attributed to various factors, including the rising popularity of XRP and the development of new applications on the XRPL, it also occurs within the context of the ongoing legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC).
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It is essential to recognize that the XRPL has previously experienced cycles of wallet growth, followed by subsequent declines. For instance, in early 2018, the XRPL boasted over 5 million wallets, but by the end of that year, the number of active wallets had diminished to approximately 3 million.
One reason behind this fluctuation might be that many newcomers create XRPL wallets but do not engage with them further, leaving them dormant. Additionally, the XRPL is not as user-friendly as some other blockchains, requiring XRP users to create specialized wallets to store and utilize their tokens. This requirement may serve as a barrier to entry for new users.
Nonetheless, despite these challenges, the XRPL remains a favoured blockchain for cross-border payments, known for its speed and efficiency.
It is still too early to ascertain whether the current surge in wallet count on the XRPL is sustainable. However, several factors indicate that it may be.
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Firstly, the average of 1,400 new daily wallets since the beginning of October implies genuine interest in the XRPL, especially in light of the ongoing Ripple v. SEC case, which could influence the cryptocurrency’s future. Secondly, this year’s largest daily increase in addresses occurred in July when XRP’s price rallied to $0.93, indicating some speculative interest in the XRPL. However, it’s vital to acknowledge that speculative interest can be volatile and might lead to a decline in wallet count if the price of XRP falls.
In summary, the recent growth in wallet count on the XRPL is a positive sign. However, caution is necessary, and it is imperative to monitor the number of active wallets over time to determine if this trend will continue. The XRPL’s evolution remains intriguing in the dynamic world of blockchain and cryptocurrency.