Crypto: XRP Ledger Drops 65%! Will Ripple Collapse?
The XRP Ledger (XRPL) recently experienced a significant drop in transaction activity! Registering a decrease of 65.6% in on-chain transactions in the second quarter of 2024 compared to the previous quarter. This drastic drop was accompanied by a notable increase in transaction costs! Thus creating concerns within the crypto community.
Crypto: XRP Ledger registers a 65% decrease in On-Chain transactions
According to Ripple’s XRP market report for the second quarter of 2024, the number of on-chain transactions dropped from about 251.39 million in the first quarter to only 86.38 million in the second quarter. This situation marks a reversal compared to the previous quarter, where the number of transactions had more than doubled! Increasing by 108% from the fourth quarter of 2023 to the first quarter of 2024, while crypto transaction costs had almost halved.
This decrease is partly attributed to the rise in transaction costs, which jumped by 168% to reach 0.00394 XRP per transaction. Ripple explains that this rise in costs is a protective measure against spam on the crypto network.
Forecasts for XRPL
Despite these challenges, Ripple remains optimistic about the future of the XRPL. The crypto company plans to position the ledger as a hub for tokenized real-world assets, with digital asset exchange Archax expected to bring hundreds of millions of dollars in tokenized assets to the XRPL over the coming year.
Additionally, Ripple plans to launch a stablecoin, the Ripple USD. The latter will be backed by US dollar deposits and US government securities. This could significantly expand the crypto user base and transaction volume of the XRPL.
The XRP Ledger is facing significant challenges with the decline in transaction activity and the rise in costs. However, Ripple’s strategic initiatives in tokenization and stablecoins could potentially revitalize the crypto platform. Meanwhile, XRP is currently experiencing a 7% decrease which worries crypto investors.
