/cdn.vox-cdn.com/uploads/chorus_asset/file/23962442/acastro_STK067__03.jpg)
/cdn.vox-cdn.com/uploads/chorus_asset/file/24247717/lp_logo_3.0.jpg){kind=logo}
/cdn.vox-cdn.com/uploads/chorus_asset/file/24016885/STK093_Google_04.jpg)
/cdn.vox-cdn.com/uploads/chorus_asset/file/24808816/Starfield__The_Settled_Systems___Supra_Et_Ultra_____Starfield__The_Settled_Systems___Su)
[ad_1]
The number of on-chain Ripple (XRP) transactions on XRPL is Below 65% from 2.5 million on March 19 to less than 900,000 on May 14, 2023.
xrp transaction crashed
As of May 14, 2023, 852,000 transactions were processed by XRPL, the decentralized blockchain network curated by Ripple Labs for faster value transfers. This represents a 65% drop from the peak of March 19 when the total number of transactions on XRPL was over 2.5 million.
in particular, there There has been no concrete technical reason such as blockchain or node vulnerabilities in XRPL during this period to explain the contraction in the number of transactions.
However, it is clear that the crypto market has been under pressure in the last two months from March to May 2023. This may have contributed to the drop in the number of on-chain transactions.
But On March 29, XRP prices peaked at around $0.58. This was 10 days after the highest level of XRP transaction numbers was reached on March 19. However, since the second half of March, the number of transactions and the price of XRP have been falling.
As of the time of writing in mid-May, the price of XRP has fallen by 27% to $0.42, which is as low as $0.58 registered on March 29. However, whether XRP prices will continue to slide lower, reflecting the number of XRPL transactions, remains uncertain.
Overall, the number of on-chain transactions can directly affect transaction fees and prices. Furthermore, it may provide insight into the level of demand for cryptocurrencies and blockchain networks. The higher the demand for the token of the underlying network, the higher the trading volume, and this surge can affect the price.
On XRPL, users pay fees using XRP. Therefore, the greater the demand for XRP in transaction settlement, the greater the pressure on the native currency.
The contraction in the volume of XRP transactions is behind the drop in the price. Nonetheless, it should be noted that the drop in XRP price was not an isolated incident. Like other crypto prices, XRP and top coins including BTC and ETH are retreating from their recent peaks recorded in March and April 2023.
As an example, after rising to $31,000, BTC price dropped to $25,800 on May 12.
During this, XRP is currently trading at $0.41, down from $0.58 posted at the end of March 2023.
SEC-Ripple Case
The drop in XRP trading volume could also be due to market sentiment as the community monitors the ongoing SEC-Ripple case that could end this year.
The United States Securities and Exchange Commission (SEC) sued Ripple executives in December 2020 for breaking federal securities laws by offering an illegal initial coin offering and using XRP to raise funds. In their assessment, the regulator says that XRP is an unregistered security.
Depending on the judge’s decision in the coming month, the outcome of the lawsuit could affect not only activity on XRP and XRPL but also how regulators view crypto in the United States.
Feature image from Canva, chart from TradingView
