XRP Ledger Sees Drop in Transaction Volume and Surge in Costs: Ripple’s Q2 2024 Report

Ripple’s latest “Q2 2024 XRP Markets Report” reveals a notable decline in transaction volume on the XRP Ledger (XRPL) from the first to the second quarter of 2024. The report, released on August 2, highlights both a significant drop in transaction activity and a sharp increase in transaction costs.

Transaction Volume Decline

According to the report, XRPL’s on-chain transaction activity fell by 65.6% in Q2 2024, with approximately 86.38 million transactions recorded compared to 251.39 million transactions in Q1 2024. Ripple’s analysis indicates that this decrease is part of a broader trend affecting many major protocols. “Activity across most major protocols decreased in Q2. XRPL was no exception with on-chain activities noticeably lower in Q2 as compared to Q1,” the report states.

Alongside the drop in transaction volume, the cost per transaction on the XRPL surged by 168% during the quarter, reaching 0.00394 XRP. Ripple attributed this increase to the network’s mechanisms designed to handle higher loads and prevent spam. The surge in costs contrasts sharply with the previous quarter’s performance, where transaction costs had nearly halved (45%) and transaction volumes had more than doubled (108%) between Q4 2023 and Q1 2024.

Despite the recent decline in transaction activity, Ripple remains optimistic about the XRPL’s future. The company anticipates that digital asset exchange Archax will introduce “hundreds of millions of dollars” worth of tokenized real-world assets to the XRPL in the coming year. This influx of assets could potentially boost network activity and use cases.

Ripple also reiterated its plan to launch a stablecoin, Ripple USD, later in 2024. This stablecoin will be backed by U.S. dollar deposits, short-term U.S. government Treasurys, and other cash equivalents. The introduction of Ripple USD is expected to enhance the XRPL’s utility and appeal in the digital asset space.

New Developments: Tokenized T-Bills on XRPL

In related news, OpenEden, a tokenization platform, recently launched tokenized U.S. Treasury bills (T-bills) on the XRPL. These TBILL tokens are backed by short-term U.S. government T-bills and reverse repurchase agreements collateralized by U.S. Treasurys. To ensure regulatory compliance and security, minters of these tokens will undergo Know Your Customer (KYC) and Anti-Money Laundering (AML) screening.

The Q2 2024 report from Ripple highlights a challenging quarter for the XRP Ledger, marked by decreased transaction volumes and increased costs. However, Ripple’s plans to introduce new financial instruments and a stablecoin could play a crucial role in revitalizing the XRPL and driving future growth. As the digital asset landscape continues to evolve, the XRPL’s adaptability and ongoing innovations will be key in navigating these challenges and capitalizing on emerging opportunities.