- Retail holders are increasing XRP holdings, contradicting the actions taken by the larger counterparts.
- The increase in development activity had little to no effect on XRP’s price.
- A good buying opportunity might have presented itself, on-chain data revealed.
Despite increased development activity on the XRP Ledger (XRPL), XRP’s price remains largely unaffected. However, on-chain data suggests a potential buying opportunity.
Increased Development Activity on XRPL
Development activity on the XRPL saw an improvement after an initial decline on the 13th of April. On-chain data provided by Santiment showed that the metric dropped to 0.28 before its recent recovery to 0.49. The XRPL is the decentralized public blockchain that allows the transfer of XRP, fiat currencies, and a few other digital assets. When development activity increases, it signifies that work done to ensure the proper functioning of the ledger has improved.
Impact on XRP’s Price
Despite the increased development activity, XRP’s price has remained largely unaffected. At press time, XRP’s price was $0.50— almost the same value that it was 24 hours ago. Historically, upgrades on the ledger have hardly been a determinant for the token’s price action. Sometimes, XRP’s price increases when the metric jumps. Other times, the price stalls or declines.
Decreased Network Activity
Despite the increased development activity, the number of active addresses on the XRPL has decreased to 16,600. This suggests a decrease in user transactions. Furthermore, the XRP’s one-day circulation was 132.28 million, a notable decrease from over 1 billion on the 1st of May. This suggests that traders are currently avoiding the cryptocurrency.
Buying Opportunity for Long-Term Holders
Despite the current market conditions, this could be good news for those who plan to hold the token in the long term. Some predictions expect XRP to hit $3 this cycle. If that is the case, buying at the $0.50 price could be a steal. However, there is no guarantee that the price will hit the aforementioned target.
Conclusion
While increased development activity on the XRPL is a positive sign, it has had little impact on XRP’s price. However, the current market conditions may present a buying opportunity for long-term holders. As always, investors should proceed with caution and conduct their own research.
