XRP Ledger Achieves All-Time High Monthly Transaction Volume

XRP Ledger sets a new record for monthly transaction volume, reaching unprecedented heights. However, persistent negative sentiment continues to weigh heavily on XRP, contributing to a continued decline in its overall value.

Xrp Ledger Achieves All Time High Monthly Transaction Volume_65b9774aeb221.webp

The XRP Ledger (XRPL) has recently marked an unprecedented milestone in monthly transaction volume, setting an all-time high, as reported by The Block Data dashboard. In the first eighteen days of January alone, the total value transacted on the open-source and decentralized blockchain reached an impressive 673.49 billion XRP.

xrp ledger achieves all time high monthly transaction volume 65b9774aee3d1

Security Challenge Spurs XRPL Network Activity

This surge in XRPL’s network activity coincides with a noteworthy security incident. On January 14th, an attempted hack on the Bitfinex cryptocurrency exchange unfolded. The attacker sought to exploit the “Partial Payments Exploit” feature to transfer 25.6 billion XRP tokens. Fortunately, Bitfinex’s robust software configuration thwarted the exploit, preventing any unauthorized transfers.

Impact on XRP Sentiment and Demand

However, the aftermath of the security incident has cast a shadow on XRP’s sentiment and demand. According to AZC News, XRP experienced a significant downturn in sentiment, reaching a multi-month low of -1.58 on January 14th, based on Santiment’s data.

xrp ledger achieves all time high monthly transaction volume 65b9774b0274c

Since the incident, daily demand for XRP has witnessed a substantial decline. On-chain data indicates a 31% drop in the number of daily unique addresses participating in XRP transactions, with 32,779 active addresses recorded as of January 17th.

Declining Momentum and New Demand

The impact extends to the cryptocurrency’s overall network activity and new demand. Over the past five days, the daily creation of new addresses for XRP transactions has declined by 34%, according to Santiment’s data.

xrp ledger achieves all time high monthly transaction volume 65b9774b0bbc2

This decline in network activity is evident in the dwindling momentum indicators on the daily price chart for XRP in recent days. The community is closely monitoring the situation, assessing both the security resilience of XRPL and the potential implications for the token’s market dynamics.

XRP’s Market Indicators Reflect Growing Negative Sentiment and Profit Loss

As of the latest update, XRP’s Relative Strength Index (RSI) stands at 40.71, while the Money Flow Index registers at 41.01. These values underscore a prevailing scenario where sell-offs in XRP surpass accumulation, particularly among daily traders, intensifying the negative sentiment within the market.

Moreover, the decline in XRP’s on-balance volume (OBV) substantiates the waning accumulation trend. Since the attempted exploit, XRP’s OBV has experienced a notable 1.4% decrease. At present, the altcoin’s OBV is recorded at 30.14 billion.

xrp ledger achieves all time high monthly transaction volume 65b9774b141e8

CoinMarketCap data reveals a 4.26% drop in XRP’s value over the past week. This decline, in conjunction with the diminishing OBV, confirms the presence of a downtrend and highlights the prevalence of substantial selling pressure.

Related: High-Risk Profit Levels in the Supply of BTC, ETH, and XRP

As a consequence of the downward price trajectory and escalating negative sentiment, a noteworthy shift has occurred in XRP transactions—more are now resulting in losses than gains.

AZC News analysis discloses a seven-day moving average indicating a ratio of 0.96 for XRP’s daily transaction volume in profit to loss. In practical terms, for every XRP transaction concluding in a loss, only 0.96 transactions conclude with a profit. This statistical insight underscores the current challenges and bearish dynamics facing the XRP market.

5.0/5

(100 votes)

Latest

Solana Launches Hackathon Competition For Ai Agents

News | AI | Altcoin | Editor Choice

Solana Launches Hackathon Competition for AI Agents

The Solana Foundation, in collaboration with a16z, is hosting an AI Hackathon for AI agent developers, offering prizes of up to $185,000.

Azcnews Xrp Surges Following Approval Of Stablecoin Rlusd

News | Altcoin | Editor Choice | Policy & Regulations

XRP Surges Following Approval of Stablecoin RLUSD

Ripple's stablecoin RLUSD has received approval from the New York Department of Financial Services (NYDFS), sending XRP soaring in price.

Azcnews Bitcoin Signals Point To A Potential Rise To $105k

News | Analytics | Bitcoin | Editor Choice

Bitcoin Signals Point to a Potential Rise to $105K

The recent price correction has caused Bitcoin to liquidate a large amount of leverage, creating a cushion for the price to possibly rise to $105K.

Microsoft Refuses To Buy Bitcoin As Reserve Asset

Bitcoin | Editor Choice | News

Microsoft Refuses to Buy Bitcoin as Reserve Asset

Microsoft shareholders have decided to reject the purchase of Bitcoin as a reserve asset due to its high volatility.

Donald Trump's Son Predicts Bitcoin Will Reach $1 Million

News | Bitcoin | Editor Choice

Donald Trump’s Son Predicts Bitcoin Will Reach $1 Million

Eric Trump, the son of U.S. President Donald Trump, predicts that Bitcoin will reach $1 million in the future.