Ripple Transaction Count Down 65%, Will This Affect XRP Prices?

Dalmas Ngetich

2 years ago

3 mins read

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The number of on-chain Ripple (XRP) transactions on the XRPL is down 65% from 2.5 million on March 19 to less than 900,000 on May 14, 2023.

XRP Transactions Crashing

As of May 14, 2023, 852,000 transactions were processed by the XRPL, a decentralized blockchain network by Ripple Labs curated for fast value transfer. This represents a 65% drop from March 19 peak when the total number of transactions on the XRPL stood at over 2.5 million.

Notably, there has been no solid technical reason, such as blockchain or node vulnerability in the XRPL, during this period to explain the contraction in transaction count.

However, what’s evident is that the crypto market has been under pressure in the last two months from March to May 2023. This might have contributed to the drop in the number of on-chain transactions.

On March 29, XRP prices peaked at around $0.58. This was 10 days after the XRP transaction count surged to the highest level on March 19. From the second half of March, however, transaction count and XRP prices have been falling.

XRP prices are down 27% to $0.42 as of writing on mid-May, down from $0.58 registered on March 29. However, whether XRP prices will continue to track lower, mirroring the number of XRPL transaction count, remains uncertain.

Overall, the number of on-chain transactions can directly influence transaction fees and prices. Moreover, it can provide insight into the level of demand for the cryptocurrency and the blockchain network. The more demand for the underlying network’s token, the higher the trading volumes, and this upsurge can influence prices.

On the XRPL, users pay fees using XRP. Therefore, the higher the demand for XRP in transaction settlement, the more upward pressure there will be for the native currency.

The contraction in the number of XRP transactions is at the back of declining prices. Nonetheless, it should be noted that the drop in XRP prices wasn’t an isolated event. Like the other crypto prices, XRP and top coins, including BTC and ETH, have been retracing from recent peaks registered in March and April 2023.

As an illustration, after surging to as high as $31,000, BTC prices have since dropped, falling to as low as $25,800 on May 12.

Meanwhile, XRP is currently trading at $0.41, down from $0.58 posted in late March 2023.

Ripple Price On May 15| Source: XRPUSDT On Binance, TradingView

The SEC-Ripple Case

The drop in XRP transaction count can also be due to market sentiment as the community monitors the ongoing SEC-Ripple case which might end this year.

The United States Securities and Exchange Commission (SEC) sued Ripple’s executives in December 2020 for conducting an illegal initial coin offering and using XRP to raise funds, breaking federal security laws. In their assessment, the regulator says XRP is an unregistered security.

Depending on the Judge’s ruling in the coming month, the outcome of the suit may impact not only the XRP and activity on the XRPL but also influence how regulators perceive crypto in the United States.

Feature Image From Canva, Chart From TradingView

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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