XRP Adoption & Activity Spike: What This Means For Its Price
July 19 2024 - 8:30PM
NEWSBTC
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 Santiment, 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. Related Reading: Dogecoin Whales Fill Up Bags
As DOGE Price Dips 5% 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: 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. Related
Reading: Bitcoin Forming A Signal That’s Usually “Very Bullish,”
Analyst Says 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. Featured image from Shutterstock.com, Santiment.net,
chart from TradingView.com
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