XRP Ledger ( XRPL ) experienced a significant increase in transaction activity in the first quarter of 2024.
According to the latest XRP market report from Ripple , the number of on-chain transactions in XRPL jumped by 108% compared to the fourth quarter of 2023.
Additionally, average transaction fees have also fallen by 45%, making it a more efficient and affordable network.
Increased Transactions and Reduced Fees
Average fees per transaction on XRPL fall 45% in the first quarter of 2024 – Source: Ripple
Ripple's report shows that XRPL recorded 251.39 million on-chain transactions during the first quarter of 2024, compared to 121.03 million transactions in the fourth quarter of 2023. This increase shows tremendous growth in XRPL network activity.
Along with the increase in transactions, the average transaction fees on XRPL also decreased significantly by 45%.
Average transaction fees fell from $0.001546 in the fourth quarter of 2023 to $0.000856 in the first quarter of 2024. This decrease in fees shows that the XRPL network is operating more efficiently and is affordable for users.
XRP Transaction Volume Growth
In addition to increasing transactions and decreasing fees, Ripple's report also highlights the growth in XRP transaction volume on XRPL's native decentralized exchange ( DEX ).
XRP trading volume on DEX increased by 5% quarter-on-quarter, from $54.9 million in the fourth quarter of 2023 to $57.6 million in the first quarter of 2024.
The growth in XRP transaction volume on DEXs indicates increasing interest and use of XRP as a trading asset on decentralized platforms. This could be a positive indicator for wider adoption and use of XRP in the future.
XRP Token Burning Increases
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Ripple's report also revealed that the number of XRP tokens burned for transaction fees doubled in the first quarter of 2024 compared to the fourth quarter of 2023.
XRPL recorded a burn of 636,184 XRP in the first quarter, a 101% increase from the 317,271 XRP burned in the fourth quarter of 2023.
An increase in XRP burning indicates that XRPL network activity is increasing and more transactions are being carried out.
XRP burning also contributes to a reduction in the circulating supply of XRP, potentially affecting the future price of XRP.
Decreasing Number of New Wallets
Despite the increase in transactions and network activity, Ripple's report shows a decrease in the number of new XRP wallets created in the first quarter of 2024.
The number of new wallets fell by 11%, with only 185,809 XRP wallets created in the first quarter, compared to 208,522 new wallets in the fourth quarter of 2023.
The decline in the number of new wallets may indicate reduced interest by new investors in XRP or may also be due to seasonal factors. However, it is worth noting that this decrease did not affect the overall XRPL network activity, which instead showed a significant increase.
Overall, the latest XRP market report from Ripple shows tremendous growth in on-chain transaction activity in XRPL in the first quarter of 2024.
A 108% increase in transactions and a 45% decrease in average transaction fees demonstrate the efficiency and affordability of the XRPL network.
Additionally, the growth in XRP transaction volume on DEXs and increased XRP burning are also positive indicators for wider adoption and use of XRP.
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