XRP Market Dynamics: Steady Trading Amid Retreating On-Chain Activity
By: Isha Das
In the first quarter of the year, XRP's trading volume demonstrated resilience with an Average Daily Volume (ADV) maintaining near $3.2 billion on top-tier exchanges. This illustrates the sustained interest from both institutional and retail investors despite the inherent volatility in the cryptocurrency market. Binance continued to hold its ground as a dominant player in the market, particularly in late January and early February, when XRP recorded one of its highest daily volumes of over $16 billion. Meanwhile, exchanges such as Upbit and Coinbase also played significant roles, whereas Bybit experienced a notable drop after a platform security breach in February.
XRP trading activity shifted slightly towards fiat pairs, suggesting a moderate inclination towards traditional currency platforms. Still, stablecoin pairs, especially those involving USDT, dominated the XRP market landscape. Despite a volatile trajectory with XRP's price briefly soaring above historical levels, the digital asset concluded the quarter at $2.09. The XRP/BTC volume ratio climbed significantly, positioning XRP ahead of other major altcoins like Cardano, BNB, and Solana based on average dollar trading volume.
Despite robust exchange volumes, XRP Ledger (XRPL) experienced a stark decline in activity, mirroring a widespread slowdown across various blockchain networks. On-chain transactions fell by more than 37%, with wallet creation also dropping noticeably. However, decentralized finance (DeFi) activities on XRPL proved relatively resilient; while down by 17%, they compared more favorably to declines seen in other key blockchain networks. Additionally, Ripple's USD stablecoin on XRPL, RLUSD, saw its market cap surpass $90 million, with a total decentralized trading volume exceeding $300 million, signaling a measure of sustained DeFi interest.
The coming months will be critical for XRP as analysts caution about potential downsides if the bearish pattern persists. A descending triangle on the XRP daily chart signals a 45% risk of falling to $1.20, especially with the backdrop of declining daily active addresses and liquidity pressures. Continuous monitoring of both on-chain and market-based indicators will be essential to navigate the developing landscape for XRP traders and investors. For further details on the XRP market, visit reputable sources like Ripple or Binance’s official pages for more comprehensive updates.
