Simply put
- Analysts from Serotonin have noted a significant shift in the XRP ledger, moving away from retail activity.
- The network’s focus now resembles that of an “interbank payment network,” resulting in decreased engagement from retail users.
- This transition contributed to the highest price levels seen last week during the XRP surge.
Ripple’s asset, XRP, soared to new heights last week, reflecting this major change away from retail activities in its blockchain.
Data from the beginning of the year indicated a steep decline in daily active accounts, though there was a rise in user volume and fees.
Page Holynek, a senior growth analytics manager at Serotonin, mentioned, “While daily users have decreased significantly, metrics like volume and liquidity have increased. This suggests that, although casual participants are departing, the remaining capital is being utilized more intensively.”
There’s been around a 50% drop in daily active users on the XRP ledger since the start of the year. For instance, the user count decreased from about 39,500 on January 1 to around 19,500 by June 29.
Furthermore, nearly all activity on the platform is linked to payments, with over 99.7% of live volumes categorized as such. Activities like decentralized exchanges and speculative trades related to retail users accounted for less than 1%.
Serotonin points out this data indicates a trend toward XRP becoming a “wholesale payment rail,” along with a rise in transfer sizes and total values per user using automated market makers (AMM).
XRP has maintained a strong retail presence, largely fueled by fervent supporters who have rallied throughout a lengthy legal battle with the SEC. However, the ongoing situation and continued efforts for a settlement add a layer of complexity to this support.
Some XRP supporters are very vocal, yet there are also those who remain less engaged. Recently, Ripple CEO Brad Garlinghouse cautioned holders about the risks related to scam activities following XRP’s rise to the third-largest market cap.
As networks backing XRP evolve, the retail narrative surrounding the token might shift. The changes within the XRPL suggest a clear move towards wholesale activity. Horinek remarked, “As regulations develop, we may see casual on-chain users depart, but those who stay are increasing their levels of liquidity and building infrastructure.”
He added, “For retail users, the environment is becoming less accommodating. XRP is starting to function more like an interbank settlement network. Whether this wholesale change will create or diminish value is still up in the air, but it’s certainly a different network compared to a year ago.”
On Thursday, XRP rose about 3% to $3.19, following a 12% drop from its all-time high of $3.65 reached last week.
