XRP May Be Showing Early Network Fatigue as Daily Transactions Drop, Potentially Signaling Structural Change

By COINOTAG | Published: 2025-10-15 | Updated: 2025-10-15

• Activity cools down: daily transactions fell from >1.5M to ~525k, indicating reduced on‑chain use.

• Price pressure: XRP trades near $2.50 and faces resistance at the 200‑day EMA around $2.80–$2.90.

• On‑chain metrics: payment volume and transaction success rates have flattened, per ledger explorers and market data.

XRP Ledger activity decline: daily transactions drop from 1.5M to ~525K; COINOTAG explains market and on‑chain impacts and what traders should watch next.

What is causing the XRP Ledger activity decline?

XRP Ledger activity decline is driven by a combination of lower retail transfers, a pullback in remittance routing, and fewer high‑frequency settlements. Data shows daily completed transactions falling from routine highs above 1.5 million in early October to roughly 525,000 in recent snapshots, reflecting materially less on‑chain movement.

How does the drop in transactions impact XRP price and liquidity?

The drop reduces visible on‑chain utility, which can compress short‑term liquidity and increase price sensitivity to large trades. Completed transactions have fallen from >1.5M daily to ~525k, and payment volume and success‑rate metrics have flattened (sources: XRP Ledger Explorer, Coin Metrics, TradingView). “Sustained reductions in transaction throughput tend to lower spot liquidity and raise volatility around major resistance levels,” said Maria Alvarez, on‑chain analyst at COINOTAG. Market participants typically watch the 200‑day EMA and large settlement flows to judge whether lower transaction counts are structural or temporary.

Activity cools down

The XRP network’s activity and overall health come into question with such a pronounced decline. Historically, adoption and market sentiment correlate with transaction counts; a sustained fall often signals fewer active users, reduced remittance routing, or shifting settlement behavior. Prolonged cooling can translate into weaker momentum for price recovery.

XRP/USDT Chart by TradingView

From a market standpoint, price action aligns with the on‑chain slowdown. After a steep sell‑off that erased short‑term gains in October, XRP remains below key moving averages. At the time of reporting XRP trades around $2.50 and has struggled to clear the 200‑day EMA, which now looks like resistance near $2.80–$2.90 (source: TradingView). Lower transaction counts reduce the frequency of on‑chain settlements that can support tighter bid‑ask spreads.

Additional indicators support the view of cooling activity: payment volume has plateaued and transaction success rates show signs of flattening. These metrics, visible on XRP Ledger Explorer and institutional datasets provided by Coin Metrics, suggest the ecosystem is in a consolidation phase rather than a period of accelerating adoption.

Structural changes

While the data is concerning, it does not yet point to an outright structural failure of the XRP Ledger. XRPL has previously endured similar contractions during consolidation phases before recovering as macro conditions improved. That said, if daily transactions continue at the current reduced level, the network could face longer periods of price and utility stagnation.

Key variables to monitor in the coming weeks include large settlement flows, remittance routing behavior, and exchanges’ on‑chain activity. If substantial settlement volumes shift back into XRPL or remittance corridors resume, transaction counts could rebound quickly. Conversely, a continued decline would likely keep on‑chain utility subdued and heighten focus on off‑chain overlays or alternate settlement channels.

Frequently Asked Questions

What specific on‑chain indicators show XRPL is cooling down?

The primary indicators are daily completed transactions (down to ~525k from >1.5M), flattened payment volume, and lower transaction success rates. These metrics, visible on ledger explorers and institutional providers like Coin Metrics, point to reduced throughput and settlement frequency.

Is XRP Ledger activity dropping right now?

Yes. Recent snapshots show a clear reduction in daily transactions compared with early October highs. This is reflected in on‑chain explorers and market charts; traders should watch transaction volumes and large settlement flows to see if the trend reverses.

Key Takeaways

• Sharp transaction decline: Daily completed transactions fell from >1.5M to ~525k, signaling lower on‑chain throughput.
• Price and technical resistance: XRP trades near $2.50 and faces the 200‑day EMA at ~$2.80–$2.90, complicating recovery.
• Monitor specific signals: Watch large settlements, payment volume, transaction success rates, and exchange flows to judge whether the decline is temporary.

Conclusion

The XRP Ledger activity decline represents a measurable reduction in on‑chain usage that has already influenced XRP price dynamics and market liquidity. While not necessarily structural, the trend warrants close monitoring of settlement flows and on‑chain metrics. COINOTAG will continue to track ledger telemetry and market signals; readers should follow COINOTAG for ongoing analysis and updates.