XRP Ledger Shows Increased Usage: Is a Price Surge Coming?

• XRP velocity is growing amid a sustained boost in XRP Ledger usage.
• With RLUSD stablecoin and tokenization features, the XRP Ledger looks poised to power more XRP velocity and price growth.

The XRPL Ledger (XRPL), a decentralized public blockchain backed by Ripple Labs, has seen heightened activity in the past few weeks. The increasing activity, demonstrating growing utility within the network, has raised questions about an imminent price surge for XRP.

XRPL’s Velocity Spikes

In a recent Quicktake post, CryptoQuant analyst Maartunn shared data indicating that XRPL’s velocity is rising. The analyst described “velocity” in a crypto like XRP as the rate at which the asset circulates within its network.

Velocity is calculated by dividing the market capitalization of a digital asset by its transaction volume. Essentially, velocity measures transactions over a specific period. Maartunn stated that an increase in velocity indicates more frequent network usage. 

According to the analyst, XRPL’s velocity approaches resistance in a descending trendline. This suggests growth in network usage and potential price increases.

Note that XRPL velocity surge corresponds to XRP’s price increase since Donald Trump’s election victory. XRP skyrocketed from $0.5319 on November 6 to $2.82 on December 3, representing a 430% rise in less than a month.

Despite the increase in velocity, XRPL’s Total Value Locked (TVL) on the blockchain has decreased since December 16. Data from DefiLlama shows a decrease from $71.5 million to $55.17 million as of press time. 

Besides the value locked, $5.07 million in tokenized treasury bills issued by Open Eden are circulating on XRP Ledger. XRPL’s TVL is tied to the Automated Market Maker (AMM) pools from the blockchain.

RLUSD to Boost XRP Ledger Growth

Meanwhile, Ripple recently launched its new RLUSD stablecoin on global exchanges, including Uphold, CoinMENA, Bisto MoonPay, and Archax. The RLUSD stablecoin issued using the XRP Ledger and Ethereum taps into the growing tokenized Real World Assets (RWA) market.

In a recent CNF update, Ripple CTO David Schwartz highlighted the impact of RLUSD on the XRP Ledger. Schwartz noted that the RLUSD launch will enhance efficiency and open new opportunities to developers on the XRPL. Ripple’s goal is to provide a regulated token pegged to the US dollar, which could ignite the growth of XRP Ledger. 

Traditional companies tokenizing RWA on XRPL could drive this growth since RLUSD will provide a liquidity stream. According to Bitwise, the RWA market is expected to reach $3 trillion in the near future.

As a push towards the RWA sector, Ripple recently partnered with Archax to launch a money market fund on XRPL. This move could boost XRPL usage and, consequently, its velocity.

As XRPL’s velocity surges, XRP’s price will likely see a rebound and move in an uptrend. As of this writing, XRP price was trading at $2.01, down 7.3% in the last 24 hours. However, the daily trading volume has increased by 133.7%, demonstrating investors’ renewed optimism.

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