Wenli Soul, Principal Analyst at CryptoQuant, recently published a detailed analysis of on-chain activity on the XRP Ledger, showing various metrics.
This analysis, which covers the period from September 15th to October 15th, shows that despite the general perception that the XRP Ledger is less well known to retail investors than other major Layer 1 networks, Transaction volumes indicate that the company remains competitive.
In particular, it provides a breakdown of key on-chain metrics, token activity, NFT trading, and automated market maker (AMM) liquidity.
XRPL’s basic on-chain metrics show mixed signals
The report highlighted mixed results across the fundamental metrics of the XRP Ledger. New wallet creations increased by 10.39%, resulting in 18,321 new accounts. Similarly, active accounts increased by 14.19%, with 10,887 users joining the network every day.
However, the total transaction value decreased by 17.57%, with the number of transactions processed on the ledger being 18.82 million, and the payment amount decreased further, decreasing by 26.16% to 6.81 million. This disconnect between user engagement and transaction volume suggests that while more wallets are being created, fewer transactions are being made per account.
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AMM liquidity provision
Meanwhile, one of the report’s standout indicators is the increase in automated market maker (AMM) liquidity provision.
AMMDeposit activity increased by 62.35% while AMMCreate surged by 143.10%. This shows that users are increasingly providing liquidity to decentralized pools on the XRP Ledger.
This is further supported by the 65.22% increase in AMMVote, which reflects active participation in governance. Despite the 81.82% decline in AMMBid, the increase in deposits suggests solid confidence in the existing XRPL liquidity pool.
It is worth mentioning that the AMM feature of the XRP Ledger went live in March. Since then, approximately 14 million XRP have been locked in over 3,000 active pools. The total value locked in the XRPL AMM pool is even more staggering, with a total value of 26.9 million XRP, of which 13.9 million consists of XRP tokens alone.
XRP Ledger token activity and DEX volume
Token trades decreased by 6.83% to 6.41 million transactions, but there was a positive trend in decentralized exchange (DEX) activity. Specifically, DEX trading volume increased by 17.64%, rising from $3.91 million to $4.6 million.
Meanwhile, the market capitalization of XRP Ledger fell significantly, dropping by 15.24% to $87.56 million. Still, the number of listed assets showed a modest spike of 1.17%, suggesting that developers and projects are still interested in launching new tokens on the XRP Ledger.
XRPL NFT trading activity overall declines
NFT trading activity on the XRP Ledger has decreased significantly. NFTokenMinting, a key indicator of new NFT creation, plunged 70.66%. Similarly, NFTokenAcceptOffer fell by 30.88% and NFTokenCreateOffer also fell by 33.30%.
Although NFTokenCancelOffer saw a slight uptick (+0.20%), a broader view suggests that NFT activity on the XRP Ledger is currently facing a downturn.
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