CryptoQuant Community analyst Maarten shared data showing that XRP Ledger (XRPL) speeds have increased over the past few weeks amid increased activity, indicating growing usage on the network.
Speed is calculated by dividing the digital currency market value by the transaction volume. analyst pointed out The increase in speed indicates frequent use of the network. He added that this could be an early sign of an imminent price increase XRP.
XRPL's momentum is nearing resistance in a downtrend line, indicating growth in usage and potential price upside.
Notably, the growth rate of XRPL follows the jump in XRP price since the US election result. The token saw a significant rise from $0.5319 on November 6 to $2.82 on December 3 – a 430% increase in less than a month.
Despite the acceleration, the total deposited into the blockchain since December 16 has fallen from $71.5 million to $58 million at the time of publication. data From DefiLlama. This movement represents a recession of nearly 20 percent.
The entire locked value of XRPL is tied to automated market maker (AMM) pools of the blockchain.
In addition to the locked-in value, $5 million of tokenized Treasuries issued by Open Eden are in circulation on XRPL.
Developments to promote growth
Ripple Labsthe company behind XRPL, Recently launched Ripple USD (RLUSD) stablecoin. Stablecoin using XRP Ledger and Ethereum.
Although the stablecoin was launched less than two weeks ago, Ripple aims to provide a regulated token pegged to the US dollar that could fuel the growth of XRPL.
This growth could be driven by traditional companies tokenizing real-world assets (RWA) in XRPL, as a cash flow is generated through RLUSD. The company has even mentioned this in its stablecoin announcement.
Bitwise estimates that the RWA market could reach $3 trillion in the foreseeable future.
Efforts to address a portion of this market have already begun with Ripple Participation with Archax to launch a money market fund managed by abrdn. These improvements could potentially increase the use of XRPL and thus its speed.
