CryptoQuant community analyst Maartunn shared data that suggests the speed of the XRP Ledger (XRPL) has increased over the past few weeks amid increased activity, increasing its usefulness within the network. .
Velocity is calculated by dividing a cryptocurrency's market capitalization by its trading volume. analyst pointed out Increased speeds indicate higher network usage. He added that this could be an early sign of an impending price hike for XRP.
XRPL velocity is approaching the resistance of the downtrend line, suggesting increased usage and possible price appreciation.
Notably, XRPL's speed growth follows the jump in XRP's price since the US election results. The token has seen an impressive rise from $0.5319 on November 6th to a peak of $2.82 on December 3rd, an increase of 430% in less than a month.
Despite the increase in speed, the total amount deposited on the blockchain has declined since December 16th, shrinking from $71.5 million to $58 million at the time of writing. data From Defilama. This move represents a decline of nearly 20%.
The locked total value of XRPL is tied to an Automated Market Maker (AMM) pool from the blockchain.
In addition to the locked value, $5 million in tokenized Treasury bills issued by Open Eden are in circulation on XRPL.
Development that drives growth
Ripple Labs, the company that developed XRPL, recently released That stablecoin is Ripple USD (RLUSD). Stablecoins are issued using the XRP Ledger and Ethereum.
Although the stablecoin has been launched for less than two weeks, Ripple's goal is to provide a regulated token pegged to the US dollar that could drive XRPL's growth.
Traditional companies that tokenize real world assets (RWA) on XRPL could drive growth as liquidity flows through RLUSD. The company also mentioned this in its stablecoin announcement.
Bitwise estimates that the RWA market could grow to $3 trillion in the foreseeable future.
Efforts to address this part of the market have already begun with Ripple. partnership In collaboration with Archax, we will launch a money market fund managed by abrdn. These developments may further encourage the use of XRPL and result in increased speed.
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