Cryptocurrency payment company Ripple has released XRP’s market report for the first quarter of 2024. The report sheds light on XRP’s soaring trading volume. It also highlights updates on the on-chain performance and recent technical developments of the XRPL ecosystem.
XRP Spot Volume Surges
According to the Q1 2024 XRP market report published officially on Ripple’s website on May 17, the total volume of Centralized Exchanges (CEX) in March has surged to unprecedented levels, recording an increase to $2.93 trillion in spot volumes and a $9.1 trillion in derivatives volume.
On the other hand, the weekly volumes of Decentralized Exchanges (DEX) have spiked by 100% to $40 billion over the fourth quarter of 2023.
Amidst the crypto market’s overperformance, XRP recorded a rise in average daily volumes. The cryptocurrency surged to $865 million in Q1 2024, a 40% increase from Q4 2023. The daily average XRP derivatives open interest increased from $460 million in Q4 2023 to $500 million in Q1 2024.
XRP’s market report revealed that towards the end of Q1 of 2024, the cryptocurrency had exhibited a “high correlation with the general market,” emphasizing XRP’s increased trading activities and robust engagement. However, at the beginning of Q1 2024, particularly in March and February, XRP witnessed a significant decline.
The cryptocurrency hit a low point in mid-February and peaked in March, highlighting a gradual decline to a potential bottom triggered by volatility. Following this downturn, XRP quickly recovered towards the end of March; however, its volatility levels were still as high as ever, recording a high of 90%.
The report also disclosed several exchanges that contributed to XRP’s increased volume. The world’s largest crypto exchange, Binance, contributed a significant volume of XRP, while the combination of Bitstamp and Upbit accounted for a large percentage of XRP’s spot volume.
Moreover, XRP’s distribution volume has remained relatively constant throughout the first quarter of 2024. Binance, Bybit, and Upbit have been responsible for more than 70% of the total trading volume in XRP during this period.
On-Chain Transactions Skyrocket
In addition to its increased volume in Q1 2024, XRP has also witnessed an increase in on-chain activity. On-chain transactions skyrocketed to $231.3 million in Q1 2024 from $121 million in Q4 2023, reflecting more than a 108% increase Quarter over Quarter (QoQ).
The average cost per transaction also decreased by 45% during this period. Additionally, the XRP burned for transaction fees surged by more than 101%, totaling 636,184 in 2024.
Furthermore, the volume on DEX (in USD) rose by over 5%, recording $57.6 million in Q1 2024 from $54.9 million in Q4 2023.
While recording an increase in on-chain activity, the XRP Ledger (XRPL) ecosystem also witnessed a significant spike in developmental activities. Earlier this year, XRPL integrated Axelar, a multi-chain platform, to improve interoperability and expand XRPL’s features across more than 55 blockchains.
Moreover, XRPL partnered with EasyA, a leading Web3 app, to deploy decentralized applications (DApps) with intelligent contract capabilities on the ledger.
Featured image from Seiki Systems, chart from TradingView
by Scott Matherson via Bitcoinist.com
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