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The XRP Ledger (XRPL) has achieved a significant milestone, surpassing $1 billion in transaction volume, propelled by a surge in Automated Market Maker (AMM) swaps.
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After the recent US elections, XRP experienced a staggering trading volume rise, indicating heightened market interest and support for digital assets.
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Ripple’s internal report attributes this robust performance to XRP’s impressive 280% rally throughout Q4 and the flourishing activity from the meme coin launchpad, First Ledger.
This article explores the recent developments in the XRP market, including massive trading volumes and the effects of AMM swaps, highlighting enhanced institutional interest.
XRPL Hits $1 Billion on DEXs as On-Chain Activity Expands
The transaction count on the XRP Ledger (XRPL) experienced a modest 2.86% decline, totaling 167 million in Q4 2024. Despite this, overall engagement on the network surged, as outlined in Ripple’s latest market analysis.
Introduced in March, the Automated Market Maker (AMM) feature resulted in a remarkable increase in swap volume, skyrocketing from $31.23 million in Q3 to an astounding $774.15 million in Q4. This impressive growth significantly boosted trading on the XRPL DEX, propelling its volume from $63.4 million to a remarkable $1 billion.
Notably, AMM swaps accounted for 77% of total transactions, underscoring their pivotal role in the XRPL ecosystem.
Adoption of the network reached unprecedented levels, with new wallet registrations surging from 140,000 in Q3 to 709,000 in Q4, indicating a significant rise in user participation.
Consequent to Trump’s election victory, XRP’s average closing price experienced a remarkable spike, ascending from $0.55 to $1.43, peaking at $2.80 by December’s close. This rally led to elevated transaction fees and corresponding token burns, with XRP burned increasing from 592,000 to 724,000 in Q4.
As reported by COINOTAG, the rise of meme coin activity also contributed to this network expansion. Specifically, the ARMY meme coin launched in January achieved a market cap of $100 million in mere days.
Additionally, the creation of new tokens on XRPL has accelerated significantly, with trustlines increasing from 7.3 million to 7.9 million, representing 600,000 new connections formed. Among these, 37,000 trustlines were associated with Ripple’s RLUSD stablecoin, a testament to its emerging popularity.
Ripple attributed this growth to the buoyant rise in XRP prices and the successful traction garnered by First Ledger as a meme coin launchpad. The firm highlighted that XRP’s remarkable 280% price increase in Q4 signified a recovery phase for the asset after enduring the SEC’s long-standing legal struggles.
“Ripple and the broader XRP ecosystem had been stifled by the SEC’s actions, which artificially manipulated the market, dampened trader confidence, and held back growth. Seven years ago, before the SEC anointed ETH and attacked XRP and Ripple, XRP was the second most valuable digital asset. With regulatory overhang easing, XRP found itself in a new position of strength,” asserts Ripple.
XRP Trading Volume Skyrockets After US Election
Ripple noted that the momentum of XRP significantly accelerated in the wake of the November US presidential election, which saw pro-crypto candidate Donald Trump emerge victorious.
This political shift ignited a remarkable increase in trading activity. Average daily trading volume surged from $500 million in October to a phenomenal $5 billion by mid-November and December. On December 2 alone, trading activity reached nearly $25 billion across prominent platforms.
Binance emerged as the leader in XRP trading, accounting for 36% of total spot volume. Upbit Korea and Coinbase followed closely with 20% and 9%, respectively. Notably, post-election, Coinbase’s market share doubled, signifying a surge in interest from US investors toward the digital asset.
“Post-election, US exchanges such as Coinbase and Kraken captured a larger share of the market from competitors like Bybit and Crypto.com. However, Binance, Bybit, and Upbit collectively represented over 60% of the total traded volume,” stated Ripple.
This substantial uptick in trading volume primarily stemmed from long-term holders rather than speculative traders, reflecting an increasing confidence in XRP’s future prospects. Investors appear to be positioning themselves for continued growth amid improving regulatory clarity and growing institutional interest.
Conclusion
In summary, the XRP market has witnessed remarkable developments following the pivotal events of Q4 2024, marked by soaring trading volumes and increased usage of AMM swaps. As regulatory environments improve and institutional interest rises, Ripple and XRP may be poised for sustained growth, offering promising opportunities for investors. Understanding these trends will be essential for stakeholders navigating the evolving landscape of digital assets.
