XRPL Basic On-Chain Metrics Show Mixed Signals

Wenry Seoul, a lead analyst at CryptoQuant, recently published an in-depth analysis of XRP Ledger's on-chain activity, showing mixed metrics.

A recent in-depth analysis of XRP Ledger’s on-chain activity over the past month reveals mixed metrics, including a decrease in total transactions but an increase in automated market maker (AMM) liquidity provision.

The analysis, conducted by CryptoQuant lead analyst Wenry Seoul and published on Medium, provides a comprehensive overview of key on-chain metrics, token activity, NFT trading, and AMM liquidity.

According to the report, new wallet creation on the XRP Ledger increased by 10.39%, with 18,321 new accounts created during the period. Additionally, active accounts surged by 14.19%, indicating an average of 10,887 users engaging with the network daily.

However, the analysis also shows a decline in total transactions processed by the ledger, which fell by 17.57%. The XRP Ledger processed 18.82 million transactions during the period. Furthermore, payments dropped even further, decreasing by 26.16% to reach 6.81 million.

This divergence between user engagement and transaction volume suggests that while more wallets are being created, fewer transactions are being made per account.

The report highlights several key metrics related to AMM liquidity provision on the XRP Ledger. Notably, AMMDeposit activity rose by 62.35%, while AMMCreate surged by 143.10%.

These metrics indicate that users are increasingly providing liquidity to the XRP Ledger’s decentralized pools, a trend that is further supported by a 65.22% increase in AMMVote, reflecting active participation in governance.

Despite an 81.82% drop in AMMBid, the rise in deposits suggests robust confidence in the existing XRPL liquidity pools.

It is important to note that the AMM functionality on the XRP Ledger went live in March. Since then, approximately 14 million XRP has been locked in over 3,000 active pools.

The total value locked in XRPL AMM pools is even more staggering, totaling a worth of 26.9 million XRP, of which 13.9 million consists solely of XRP tokens.

The analysis also covers token activity and decentralized exchange (DEX) volume on the XRP Ledger. While token trades decreased by 6.83%, dropping to 6.41 million, DEX activity showed a positive trend.

Specifically, DEX volume surged by 17.64%, climbing from $3.91 million to $4.60 million during the period.

Meanwhile, the XRP Ledger’s market cap dropped significantly, declining by 15.24% to reach $87.56 million. Yet, the number of listed assets saw a mild spike of 1.17%, suggesting that developers and projects are still interested in launching new tokens on XRP Ledger.

Finally, the report examines NFT trading activity on the XRP Ledger, which also witnessed substantial declines across the board.

NFTokenMinting, a key indicator of new NFT creation, plummeted by 70.66%. Similarly, NFTokenAcceptOffer dropped by 30.88%, and NFTokenCreateOffer also tanked by 33.30%.

Although there was a small uptick in NFTokenCancelOffer (+0.20%), the broader picture suggests that NFT activity on the XRP Ledger is currently facing a downturn.

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