XRP Ledger Sees Sharp Decline In Major Metric That Threatens To Send XRP Price To $0.2
The post XRP Ledger Sees Sharp Decline In Major Metric That Threatens To Send XRP Price To $0.2 appeared on BitcoinEthereumNews.com.
Ripple’s Q2 2024 market report recently highlighted a decline in a crucial on-chain metric that could significantly impact the the XRP price. This decline in network activity and several other factors threaten to send the crypto token to new lows soon enough. XRP Records Decline In On-chain Transactions According to the report, on-chain transactions on the XRP Ledger (XRPL) declined by 65.6% in the second quarter of 2024. 86.38 million transactions were recorded during this period, compared to 251.39 million in the first quarter of this year. A drop in the network activity is significant as it highlights investors’ sentiment towards the XRP ecosystem. Related Reading This decline in network activity can also negatively impact the XRP price, especially if this trend continues in the third quarter of the year. A plausible explanation for the decline in on-chain transactions for the XRPL in the second quarter is XRP’s underperformance in the first quarter of the year. High expectations for XRP heading into the new year may have prompted investors to increase their exposure to the crypto, which led to the highs in network activity recorded in the first quarter. However, these investors may have had a rethink as XRP failed to reach new highs even when Bitcoin hit a new all-time high (ATH), leading to a decline in network activity in the second quarter. The silver lining is that XRP investors have regained their bullish sentiment towards XRP, leading to increased network activity. Bitcoinist recently reported a spike in new addresses and the number of addresses interacting on the XRPL, with these metrics reaching their highest levels since March earlier this year. The revived bullish sentiment among XRP investors is mainly thanks to the belief that the lawsuit between the US Securities and Exchange Commission (SEC) and Ripple could end…
Filed under: News - @ August 6, 2024 5:24 am