XRP Bullish Signal: Address Activity Spikes To Historical Levels

Keshav Verma

2 years ago

3 mins read

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On-chain data shows the XRP active addresses metric has spiked to historical levels recently, a sign that may turn out to be bullish for the asset.

XRP Daily Active Addresses Has Observed An Uplift Recently

According to data from the on-chain analytics firm Santiment, address activity on the network reached its second and third-highest values ever during the last couple of days.

The “active addresses” indicator tracks the total number of unique addresses that are participating in some kind of transaction activity on the XRP blockchain daily. This metric accounts for both senders and receivers.

As the indicator only measures the unique number of addresses, it means that even if there are some addresses making multiple transfers on the network in a single day, their contribution toward the metric remains only one unit.

Unique addresses can be thought to be the same as the unique users visiting the blockchain, so the active addresses indicator can tell us about the degree of traffic that the network is observing at the moment.

When the value of this metric is high, it means that a large number of addresses are taking part in transfers on the chain right now. Such a trend suggests that traders are active in the market currently.

On the other hand, low values imply the network isn’t observing that much activity right now. This kind of trend can sometimes be a sign that there isn’t much interest in the cryptocurrency among general investors.

Now, here is a chart that shows the trend in the Bitcoin daily active addresses over the last few months:

Looks like the value of the metric has been quite high in recent days | Source: Santiment on Twitter

As shown in the above graph, the XRP active addresses had been at relatively low values during the past few weeks, but in the last couple of days, the indicator has suddenly burst into life.

Around two days ago, the metric saw its second-highest-ever daily spike, registering a value of around 490,000. This means that 490,000 unique addresses had been interacting on the chain during this surge.

Yesterday, the metric observed a slowdown and has since dropped down to a value of 281,000. This level, however, is still the third largest in the history of the cryptocurrency, meaning that activity still continues to be at historically high levels right now.

The only instance where a higher value than these spikes was observed (that is, the all-time high of the indicator) was back on the 18th of March. In the chart, Santiment has highlighted this particular surge.

Interestingly, the price of XRP went on to rally around 45% following the occurrence of this spike, suggesting that the high user activity may have provided the fuel for the rise.

Currently, as users continue to remain highly active on the network, the price is also going up. It’s unclear, though, whether this ongoing surge will grow into anything like what was seen earlier in the year, but it’s an optimistic sign nonetheless.

XRP Price

At the time of writing, XRP is trading around $0.5, up 8% in the last week.

The coin seems to have been going up recently | Source: XRPUSD on TradingView

Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Santiment.net

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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