- The XRP network has seen a drastic 50% decline in active addresses over the past three months, dropping from 202,250 to around 101,160, alongside a significant reduction in transaction volume.
- However, Ripple continues expanding globally, with a recent partnership in South Korea aimed at boosting institutional adoption and strengthening its presence in the APAC region.
The XRP network has recently experienced a staggering decline in activity, with over 101,000 active addresses vanishing in just three months. This sharp drop has raised concerns among investors and analysts, as the network’s transaction volume also appears to be dwindling.
A Significant Drop in Active Addresses
According to crypto analyst Ali Martinez, a recent Glassnode chart reveals that the number of active whale addresses on the XRP network has plummeted by 50%. In December, the network had around 202,250 active addresses, but as of now, that number has shrunk to approximately 101,160. The highest activity was recorded on December 2, when active addresses peaked at 200,000.
This decline aligns with broader reports indicating a reduction in XRP transaction volume. The XRP network, widely used for remittances and payments, appears to be experiencing a cooling phase in demand. At the end of January, the network saw a drastic drop of 1 million transactions, further solidifying the downtrend in network usage.
A Sudden Surge in Transactions
Despite the downward trend, the XRP network saw a brief but significant spike in activity on February 25. On that day alone, an astounding 2,054,526 transactions were recorded. This sudden surge suggests that while network activity has generally declined, there are still moments of heightened movement within the ecosystem. Some analysts speculate that large institutional movements or strategic transactions by major players might be behind such fluctuations.
Ripple’s Expansion Amid Network Challenges
While the XRP network is witnessing a decline in active addresses and transactions, Ripple—the company behind XRP—continues to expand its global presence. Recently, Ripple’s president, Monica Long, announced a new partnership with South Korea’s BDACS, a leading institutional custody provider. This move aims to enhance XRP and RLUSD custody services for financial institutions in the region.
South Korea is actively preparing for a new wave of institutional cryptocurrency adoption, and Ripple’s expansion into the Asia-Pacific (APAC) market could prove beneficial for XRP’s long-term growth. BDACS has also partnered with Woori Bank, one of South Korea’s largest financial institutions, further solidifying Ripple’s position in the digital asset custody space.
What Lies Ahead for XRP?
While the decline in active addresses is concerning, XRP still holds potential due to its strong institutional backing and expanding global footprint. If Ripple’s strategic moves in markets like South Korea gain traction, they could help stabilize the network’s activity levels.
Investors and traders should closely monitor XRP’s transaction trends and major partnerships to gauge whether this recent drop is a temporary phase or a sign of deeper challenges within the ecosystem.
