XRP up by 20%, XRPL transactions peaking – What’s going on?

• Number of transactions executed on XRP Ledger climbed to another local high recently
• Feat achieved on the back of altcoin recording 20% gains in just 7 days

On 19 July, the XRP Ledger (XRPL) saw its transaction count inch closer to 5 million, returning to levels not seen since January 2024. This surge is notable, especially given that the transaction count was below 1 million at the end of June. At the time of writing, figures for the same were close to 4.3 million, despite a recent downtick on the charts.

The aforementioned hike in transaction activity was likely driven by a rise in micropayment transactions, which have become more prevalent on the XRPL.

Source: XRPScan

While micropayments may be a reason, it didn’t stop other members of the XRP community from investigating what might be spurring the uptick in these metrics. XPMarket’s CEO, for example, looked at a set of wallets operated by trading bots and assessed their activity over the past week to identify whether a clear-cut reason can be found.

Despite this spike in transaction volume, however, the number of active accounts and the creation of new accounts on the XRPL have remained steady. This stability can be interpreted as a sign that the surge is not necessarily due to a sudden influx of new users, but rather increased activity among existing users.

In correspondence with the transaction volume, XRP’s price rose significantly too – Up over 20% in the last seven days alone. In fact, the cryptocurrency is now among the market’s best crypto-performers over the past week.

Source: XRP/USD, TradingView

Here, it’s worth pointing out that the said feat did not happen out of the blue. While XRP’s price performance is a product of the wider market’s recent optimism, XRPL’s performance has had a solid foundation to work on.

Consider Q1 of 2024, for instance – According to Messari, during the 90-day period, the demand for XRPL surged, pushing its quarterly revenue to a yearly high on the charts.

Similarly, between January and March, XRPL’s revenue denominated in USD amounted to $205,000 – A yearly high.