While the XRP price has continued to decline over the past month, activity on the XRP Ledger (XRPL) has been moving in the completely opposite direction, suggesting that network engagement is increasing despite weaker market momentum.
More precisely, the number of active XRPL accounts surged from 15,678 on October 3 to 36,342 at press time, November 3, according to data Finbold retrieved from CryptoQuant.
The latelst figure represents an increase of 20,664 accounts, or approximately 132% in just one month, meaning daily active accounts more than doubled over the period in question.
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At the same time, XRP lost approximately $15.2 billion in market capitalization, as its price dropped from $1.48 to $1.24, based on a circulating supply of 63.35 billion tokens.
Receiving vs. sending addresses on the XRP Ledger
Notably, both the number of sending and receiving XRP accounts witnessed similar growth. Specifically, receiving addresses climbed from 30,870 to 44,451 in the same period, marking a 44% increase. Meanwhile, sending addresses rose from 15,127 to 21,432, up approximately 41.7%.
Active sending addresses measure the number of unique addresses that initiated on-chain transactions within the relevant period. Conversely, active receiving addresses track the number of unique addresses that received on-chain transactions.
Growth in both metrics implies increased network participation, with more accounts participating in both incoming and outgoing transactions. However, this does not translate into accumulation or buying pressure per se.
XRP account activity surges amid XRP price pressure
Returning to the initial point, the divergence between suboptimal XRP price performance and on-chain activity is particularly noteworthy.
In short, the declining price points to persistent selling pressure or weaker investor sentiment, while the sharp increase in active accounts suggests that more participants are interacting with the network.
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However, rising activity alone does not necessarily indicate growing buying pressure or an imminent price recovery, as active accounts measure network participation rather than capital inflows.
Nonetheless, some independent signs of a potential rally are starting to appear, suggesting that even a 70% rally could be possible.
Featured image via Shutterstock
