Exploring the XRP Ledger: Analyzing Mixed On-Chain Activity and AMM Liquidity
During the period between September 15 and October 15, an analysis of the XRP Ledger revealed some interesting insights. Despite the belief that XRP Ledger is less popular among retail investors compared to other major Layer 1 networks, its transaction volume remains competitive. The analysis provided a detailed breakdown of on-chain metrics, token activity, NFT trading, and AMM liquidity.
Overview of the XRP Ledger On Chain Metrics
Basic on-chain metrics for the XRP Ledger showed mixed results. New wallet creation increased by 10.39%, with 18,321 new accounts, and active accounts surged by 14.19%, with 10,887 users engaging daily. However, total transactions fell by 17.57% to 18.82 million, and payments dropped by 26.16% to 6.81 million. This suggests that fewer transactions are being made per account despite an increase in the creation of new wallets.
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One standout metric was the growth in automated market maker (AMM) liquidity provision. AMMDeposit activity rose by 62.35%, AMMCreate surged by 143.10%, and AMMVote increased by 65.22%, indicating active participation in governance. This is supported by a significant increase in the total value locked in XRPL AMM pools, totaling 26.9 million XRP.
Token trades decreased by 6.83% to 6.41 million, but DEX volume surged by 17.64% to $4.60 million, showing a positive trend in decentralized exchange activity. Despite a 15.24% decline in market cap, the number of listed assets saw a mild increase of 1.17%, indicating ongoing interest in launching new tokens on XRP Ledger.
NFT trading activity on the XRP Ledger experienced significant declines. NFTokenMinting dropped by 70.66%, NFTokenAcceptOffer by 30.88%, and NFTokenCreateOffer by 33.30%. This suggests a downturn in NFT activity on the XRP Ledger.
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Kayode Michael is a seasoned cryptocurrency analyst, successful trader, and skilled writer with a strong command of cryptocurrency analysis and price action. He leverages his technical analysis skills to provide valuable insights into emerging market trends and potential opportunities for investors to make informed decisions.
