A recent by a CryptoQuant analyst, Wenry, sheds light on key trends within the XRP ecosystem, offering insights into the activity happening behind the scenes. The analyst particularly revealed where XRP transactions are used by category activity.
XRP Transactions: Decline in NFT Activity And Rise in DEX Volume
According to Wenry, XRP’s daily transaction volume has been “competitive with major Layer 1 networks,” showing that XRP’s Ledger remains highly active, even though it is less known to retail investors than other blockchain networks.These numbers suggest that while fewer transactions are being processed, the active user base continues to grow. Wenry’s analysis explored on-chain activity related to token trading and decentralized exchange (DEX) volume.
This shift suggests that despite a slight decrease in overall trading, more activity occurred on decentralized platforms, demonstrating continued interest in decentralized finance (DeFi) solutions on the XRP Ledger.
Regarding non-fungible tokens (NFTs), the analysis showed a significant decline in NFT-related activities on the XRPL. NFTokenMint, which tracks new NFTs created on the network, dropped by 70.66%, from 65,021 to 19,076.AMM Liquidity and Increased Participation
A key highlight of the analysis was the strong growth in Automated Market Maker (AMM) liquidity on the XRP Ledger. AMM-related metrics saw considerable increases, with AMMDeposit rising by 62.35%, AMMCreate increasing by 143.10%, and AMMWithdraw climbing by 42.97%.
These increases reflect rising confidence in the liquidity pools on the XRPL, as more participants provide liquidity and create new pools. The surge in AMMCreate, which jumped from 58 to 141, suggests that more users are participating in liquidity provision on the network. However, one area of decline in AMM-related activity was the AMMBid, which dropped by 81.82%. Despite this decrease, the overall rise in liquidity deposits and the creation of new pools indicate that the XRP Ledger’s decentralized liquidity offerings remain strong.According to Wenry, these metrics highlight the growing trust in existing liquidity pools and the broader AMM ecosystem on the XRP Ledger.
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