In the midst of the broader market recovery, the XRP Ledger (XRPL) experienced a surge in network activity across various metrics. According to a recent report by Messari, active addresses and transactions on XRPL saw a significant increase. Active addresses rose by 37% quarter-over-quarter (QoQ), while transactions increased by a whopping 113% QoQ. This surge in activity was fueled by approximately 45,000 accounts that collectively sent over 30 million transactions primarily for inscription-related activities.
Despite the high transaction volumes, XRPL demonstrated remarkable resilience by handling over 80 transactions per second for an entire day without any network issues, as reported by Messari. The total number of accounts on XRPL also saw a 3.1% increase, reaching 5.15 million. New addresses, however, decreased by 12.4% QoQ due to a surge in inscription activity in Q4. Nevertheless, there was a significant 29.8% annual increase in the number of new addresses from Q1 2023 to Q1 2024.
Impact of Inscription Activities
The surge in active addresses on XRPL, particularly the 92% QoQ rise in unique senders, highlighted the impact of inscription activities on the network. Unique senders surpassed unique receivers for the first time since Q1 2022, showcasing the influence of inscription-related transactions on network activity.
The total market cap of fungible tokens, known as Issued Currencies on XRPL, experienced a 16% decrease QoQ, amounting to $142 million. Sologenic (SOLO) emerged as the leading token on the network, representing 42% of the total market cap. The top three tokens collectively made up 65% of the total market cap. Moreover, stablecoins and wrapped tokens gained popularity on XRPL based on the number of holders in comparison to other tokens.
The collaboration between Gatehub and Xumm to offer 14 digital assets on XRPL signals a growing interest in stablecoins on the network. While stablecoins on XRPL have not yet reached the adoption levels of major ones on other networks like Tether’s USDT or Circle’s USDC, Ripple’s recent announcement to launch a USD-pegged stablecoin on XRPL and Ethereum could change the landscape. By leveraging XRPL native functionality and ERC-20 token standards, the stablecoin will be fully backed by US dollar deposits, treasuries, and other cash equivalents, with monthly third-party attestations. This initiative has the potential to trigger a significant liquidity event in the XRPL ecosystem.