On-chain data shows XRP is observing a spike in its adoption and network activity. Here’s what this could mean for the asset.
XRP New Addresses & Active Addresses Have Both Spiked
According to data from the on-chain analytics firm , XRP has seen two metrics hit the highest levels since March recently. The first indicator of interest here is the “Network Growth,” which keeps track of the total number of new addresses being created on the network daily.
Spikes in the Network Growth can appear for a couple of reasons. The most obvious of the two is fresh adoption, as new investors coming in would naturally create new addresses. The other factor can be existing users creating multiple wallets for a purpose like privacy.
Generally, both are at play whenever the indicator rises, so it can be assumed that some net cryptocurrency adoption is occurring.
The second relevant indicator is the “Daily Active Addresses,” which measures the total number of unique addresses participating in some transaction activity on the network daily.
The active addresses can be considered the same as the unique number of active users on the chain, so this indicator’s value can tell us about the daily traffic the coin is currently witnessing.
Now, here is a chart that shows the trend in both of these metrics for XRP over the last couple of months:
Both of these metrics appear to have registered spikes in recent days | Source:
As the above graph shows, sharp spikes in XRP in the network growth and daily active addresses have recently been observed. This would suggest that the network is observing both an influx of users and activity from existing ones.
More specifically, the blockchain saw 1,721 new addresses coming online and 47,363 users interacting at the peak of this spike. This growth for the cryptocurrency has come as its price has surged by more than 18% over the past week.
Investors find sharp price actions like rallies exciting, so new users get attracted to the network, and existing ones come alive to make some moves during these periods. As such, these latest spikes in the Network Growth and Daily Active Addresses aren’t unusual.
Spikes like these are essential for any rally to be sustainable, as the increased traffic provides the fuel such a move needs to keep going. Any rallies in the past that have failed to attract attention have ended up dying off before long. Thus, this development may be positive for XRP’s latest recovery run, at least on paper.
XRP Price
While the on-chain metrics are looking optimistic, the XRP price has still encountered an obstacle, as it has dropped back to $0.55 after breaking above $0.63 just a couple of days back.
The price of the coin appears to have overall been going up recently | Source:
Featured image from Shutterstock.com, Santiment.net, chart from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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