The Decline in Trading Volumes on XRPL: What Does it Mean for Ripple?
Trading volumes on the Ripple-based XRP Ledger (XRPL) witnessed a significant drop in the second quarter of 2024, in line with the broader trend affecting major blockchain protocols. XRPL recorded 86.39 million transactions during this period, marking a 65.6% quarterly decrease. Despite the decline, the network’s average transaction fee saw a significant increase of 168% to 0.00394 XRP.
Ripple’s Optimism Amid Decreasing Trading Volumes
Even as XRP’s trading volumes fell by 20% alongside other major cryptocurrencies like Bitcoin and Ethereum, XRP spot trading volumes remained relatively high throughout the quarter. Binance continued to dominate the trading volume, with other exchanges such as Bybit and Upbit also playing significant roles.
Trading volumes of XRP against fiat currencies dropped by 10%, with the majority of trades being done against the stablecoin USDT. Ripple, however, remains positive about these developments, especially in light of the upcoming launch of a U.S. dollar stablecoin later in the year.
Ripple’s confidence in XRPL’s future remains unwavering. The company anticipates increased network activity following an upcoming update. Key developments, such as the integration of regulated exchanges and custodians Archax and OpenEden, are expected to introduce a multitude of tokenized physical assets to XRPL.
Exciting Innovations and Future Prospects for XRPL
Ripple also revealed some exciting upcoming innovations for XRPL, including the XRPL Ethereum Virtual Machine (EVM) sidechain, Axella interoperability, new oracles, and multi-purpose token (MPT) standards. These developments are poised to drive XRPL’s growth in the upcoming quarters and boost its utility in the blockchain ecosystem.
Monica Long, President of Ripple, expressed optimism about the progress on the XRPL EVM sidechain and Axella, highlighting the anticipated influx of tokenized real-world assets through ArchAxe. These advancements, along with the preparation for future oracle and MPT standards, are expected to make quarters Q3 and Q4 particularly exciting for XRPL enthusiasts.
Ripple’s Legal Battles and Political Involvement
On a separate note, Ripple is eagerly awaiting a court ruling on its prolonged lawsuit against the U.S. Securities and Exchange Commission (SEC). The company is hopeful for a fair judicial outcome, particularly regarding relief related to the SEC’s allegations concerning XRP sales.
Ripple also emphasized the significance of the upcoming November election, deeming it the most crucial election in cryptocurrency history. The company’s involvement in political contributions, particularly the $25 million donation to Fairshake, underscores its commitment to ensuring regulatory clarity and a prosperous future for U.S. cryptocurrencies.
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