The XRP Ledger has experienced a significant increase in activity, with active addresses rising sharply in recent months. Data reveals active addresses surged from 8,500 in July 2024 to over 47,000 by December 2024.
This growth highlights increasing engagement from both retail and institutional users. However, the price of XRP has remained relatively flat despite this heightened activity.
Source: CryptoQuant
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Historical Trends Show Fluctuations in XRP Price and Activity
Analyzing CryptoQuant data concerning XRP, it is important to note the cyclicality between the price and the rate of active addresses from January 2022 to December 2024. Starting in early 2022, the two began to rise simultaneously, with the active addresses reaching 140,000.
However, starting in mid-2022, this trend shifted upward, decreasing prices and addresses.
Source: CryptoQuant
Volatility and Market Conditions Influence XRP Price
According to Coinglass, XRP’s price has shown notable volatility between March and December 2024. Steady inflows maintained the price until September, and extensive market inflows in November led to a short-lived spike. The price rose to nearly $3 before retracing to between $2 and $2.5 in mid-December.
As of writing, XRP was exchanging hands at the $2.19 price level, which is an increase of 1.22% in the last 24 hours, as per CoinMarketCap. However, the trading volume increased by 35.22% to $5.57 billion, showing continued demand for the token as people trade it, particularly amid speculation that the price of the coin may decline further.
ConclusionÂ
The XRP Ledger’s rising adoption underscores its potential in the blockchain space. Still, the disconnect between increased network activity and the token’s price highlights the complex interplay of market forces affecting its valuation. As trading activity remains robust, future developments could provide insights into the factors shaping its price trajectory.
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