The XRP Ledger (XRPL) had an exceptional first quarter, experiencing significant growth across various metrics, according to data from Messari. The network saw a surge in transactions, with an average of 2.7 million daily transactions, representing a 113% increase compared to the previous quarter. Additionally, the average daily active addresses increased by 37%, reaching 41,000. Despite these impressive numbers, the network still lags behind other major networks like Solana and Ethereum in terms of decentralized finance (DeFi) activity.
One notable aspect of the first quarter was the sharp rise in payment transaction activity, which was not accompanied by a corresponding increase in active addresses. This suggests that users were making more payments on average, leading to a peak of 22 million payments recorded in a single week. Messari attributes this trend to the rise of inscriptions on the network, which are expected to stabilize over time.
Looking ahead, XRPL is poised for further growth with the launch of an automated market maker (AMM) towards the end of the quarter and the upcoming introduction of a stablecoin. These developments are expected to contribute to the network’s expansion throughout the year.
Despite the positive performance in transactions and payments, XRPL still faces challenges in the DeFi space. The market cap of issued currencies on the network decreased by over 10% to $142 million in the first quarter, and attracting investor interest has proven to be a hurdle. Sologenic’s SOLO token dominates the DeFi market cap, accounting for over 40% of the total. NFT activity on the network was also underwhelming, with DEX volume surpassing NFT volume by a significant margin.
In terms of price, XRP is currently trading at $0.53, with minimal movement in the past day and low volatility over the past week.
Overall, while XRPL has demonstrated impressive growth in transactions and payments, there are still areas for improvement, particularly in the DeFi and NFT sectors. However, with upcoming developments and the network’s attractive features such as low fees and fast transactions, XRPL is expected to continue its expansion in the coming months.
