Until Q3 2024, the majority of transactions on the XRP Ledger were focused on transfers between centralized exchanges (CEX) and certain enterprise sectors. However, in recent months, the volume of $XRP moving on-chain has significantly surpassed inflows to exchanges, leading to a sharp rise in active addresses. Notably, on December 2, the number of active addresses exceeded 100,000, marking a yearly high.
While this activity remains relatively low compared to other Layer 1 mainnets, the increasing on-chain engagement of retail users suggests that the XRP Ledger ecosystem is creating an environment where competitive projects—similar to Uniswap, Chainlink, 1inch, Maker, Compound, and dYdX—can emerge and thrive.
Additionally, several initiatives are working to address longstanding weaknesses in the XRP Ledger’s infrastructure and DeFi sector. Notable advancements in the Sidechain/Layer 2 space include The Root Network, XRPL EVM, and XRPL Hooks. In the wallet sector, projects such as Xaman and Girin Wallet are progressing, while in DeFi, Firstledger, Magnetic, Sologenic, and Lotus Protocol stand out as key players.
Written by Wenry
