As XRP bounces higher, can it take XRPL along for the ride
- XRP’s social dominance increased sharply, but a few XRPL metrics were declining.
- XRP’s on-chain metrics looked bullish, suggesting a further price uptick.
Santiment’s latest tweet revealed that Ripple’s [XRP] social dominance has skyrocketed, reflecting its popularity in the crypto space. The credit for this surge can be given to XRP’s price action, as it registered nearly 30% growth over the last week. As per CoinMarketCap, XRP was trading at $0.484 at press time, with a market capitalization of over $25 billion.
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👀 #XRPNetwork's social dominance is at its highest point in a year following the surge above $0.49 for the first time since Nov. 6. Added $XRP crowd recognition means more volatile price swings caused by increased volume & mainstream interest. https://t.co/bMT66JTwmT pic.twitter.com/pUIWe9vGKu
— Santiment (@santimentfeed) March 27, 2023
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State of XRP Ledger
While XRP enjoyed a comfortable bull rally, XRPL’s network statistics seem to have declined. The total number of transactions executed on the network went down after spiking on 19 March.
The number of transactions per ledger also followed a similar trend of decline over the last few days. As XRP continues to pump, will XRPL benefit from it? It is possible that XRP’s popularity can help attract new users to XRPL.
A look at XRPSCAN’s data showed that the number of new accounts activated on the network increased in March. As accounts increased, there could also be a jump in the number of transactions in the future.
Moreover, the daily amount of XRPL trust lines created has gone up lately, suggesting more usage. To make things clear, the XRP Ledger uses structures called trust lines to store tokens. The XRP Ledger’s prohibition on forcing someone else to hold a token they don’t want is enforced through trust lines.
Will prices pump further?
A higher bounce in XRP’s price will also be beneficial for XRPL. A look at XRP’s on-chain metrics suggested that it was likely to happen. For instance, XRP accumulation has increased considerably, indicating whales’ confidence in the token.
Realistic or not, here’s XRP market cap in BTC’s terms
Messari’s data complemented historical data. A few days ago, the whale transaction count on the Ripple network hit several highs since 18 March. Weighted sentiments also drifted towards the positive side, which showed investors’ trust in XRP.
As per Santiment’s chart, XRP’s MVRV Ratio went up considerably as well, suggesting a further hike in its price over the coming days. XRP’s velocity registered an uptick, which indicated a higher movement of the token. In addition to that, XRP’s demand in the derivatives market also increased, as was evident from its Binance funding rate.