Dropping from the Millionaire Club: Substantial Decrease in XRP Transactions Approaching Zero
In recent days, XRP, the third-largest cryptocurrency by market capitalisation, has experienced a notable decline in network activity, raising concerns about its momentum.
The overall trend suggests a potential mismatch between network potential and real-time demand for XRP. This is evident in the abrupt contraction, which indicates a significant liquidity and activity gap compared to the regular handling of over 800,000 to almost one million daily payments from late August to early September.
The decline in XRP's network activity is not immune to the general market sluggishness, despite legal victories and ecosystem headlines. The recent drop in network activity is one of the sharpest short-term declines in XRP in recent months.
The volume of transactions processed through the XRP network dropped by over 600,000 in one day, a concerning figure for a network that depends on its ability to facilitate cross-border settlements and handle high transaction volumes. The lowest number of transactions on the XRP network in the mentioned timeframe was about 223,000 on Sept. 15.
The loss of 600,000 transactions is concerning, as it could impact the credibility of XRP's utility story. If transaction counts continue to decline, it may raise questions about the network's ability to deliver on its promise of efficient and fast cross-border transactions.
However, on the price front, XRP is currently trying to stabilize above $3. The recent price drop following a brief surge above $3.20 indicates a bearish sentiment in the market. After reaching $3.20, XRP's momentum swiftly waned, and sellers drove the price back toward $3.00.
If XRP makes a strong recovery at the current level, it might maintain its bullish structure; however, if it breaks, it could be pulled toward the $2.80 level, where the 100-day EMA serves as secondary support. The 50-day EMA is currently serving as a possible support area for XRP.
Despite the declining network activity, Ripple Labs continues its drive for institutional adoption. The current state of institutional adoption of XRP by Ripple Labs is characterized by significant progress following the August 2025 SEC settlement that reclassified XRP as a commodity, unlocking $1.2 billion in institutional capital and leading to the approval of the first XRP ETF. Major banks have adopted XRP for faster, cheaper cross-border payments, and Ripple's $1.25 billion acquisition of Hidden Road and the processing of $1.3 trillion in Q2 2025 via its ODL service underpin this adoption.
Positive regulatory environments in Europe and Asia, and enhancements like the XLS-30 AMM protocol positioning XRP as a bridge for CBDC interoperability, further support this adoption. Additionally, Bloomberg assigns a 95% probability of full ETF approval by year-end 2025.
In conclusion, while XRP's network activity is declining, the price action remains volatile. The current state of the market and potential factors contributing to the network decline, such as technical limitations, decreased institutional flows, or declining retail participation, will be key factors to watch in the coming days.
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