XRP Network Growing: Why Isn’t the Price Rising?

XRP network activity surged, but price hasn’t kept pace with growing adoption.
XRP’s price fluctuates with market inflows, showing volatility despite rising addresses.
Increased trading volume signals strong market interest, despite recent price dip.

The XRP network shows a sharp increase in active addresses, pointing to heightened interest in the platform. However, the price of XRP has not mirrored this surge.

Despite growing adoption of the XRP Ledger by retail and institutional users, the token’s price performance is flat. This raises the question: why isn’t the price of XRP rising with increased network activity?

XRP Ledger Activity Increases

Active addresses on the XRP Ledger jumped from just 8,500 in July 2024 to over 47,000 in December 2024, demonstrating a rapid rise in network activity, according to data shared by STEPH IS CRYPTO on X.

However, adding to this sentiment, CryptoQuant data from January 2022 to December 2024 shows that XRP’s price and active addresses move in cycles. In early 2022, both metrics increased, with active addresses reaching 140,000. But this surge was short-lived, and the number of active addresses and the price of XRP fell by mid-2022.

By late 2023 and 2024, the number of active addresses and XRP’s price rose again. Active addresses climbed to over 23,000, while the price reached nearly $2.1 by December 2024, rebounding from earlier lows.

XRP Price Fluctuates

Data from Coinglass highlights the volatility in XRP’s price related to market inflows and outflows. Between March and December 2024, the price of XRP showed notable fluctuations.

While inflows were stable through September, large inflows in early November 2024 coincided with a price increase, peaking at nearly $3. A correction followed this surge, with the price settling back between $2 and $2.5 by mid-December.

Market Conditions and Price Pressure

As of press time, XRP was trading at $2.14, down 4.69% over the past day. While this price drop may raise concerns, other metrics, such as trading volume, suggest that the market remains highly active.

The trading volume of XRP is up 35.22%, reaching $5.57 billion, showing continued trading activity despite the price drop.

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