The activity on the XRP Ledger (XRPL) experienced a dramatic decline in the second quarter of 2024, marking a significant shift from the previous quarter. According to Ripple’s “Q2 2024 XRP Markets Report,” on-chain transactions on the XRPL dropped by 65.6%, with total transactions falling to approximately 86.38 million from 251.39 million recorded in the first quarter of 2023. This notable decrease in activity was paralleled by a substantial rise in transaction costs.
Ripple’s report, released on August 2, highlighted that “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 surge in transaction costs was equally significant, with the average cost per transaction increasing by 168% during the quarter to 0.00394 XRP per transaction. The increase in transaction fees, Ripple explained, is a mechanism to protect the network from spam and ensure its smooth functioning under load.
In terms of US dollars, the average transaction cost saw a 141% spike. This rise came after a previous quarter where transaction numbers had more than doubled (up 108%) between Q4 of 2023 and Q1 of 2024, while transaction costs had nearly halved (down 45%).
Despite the downturn in transactional activity, Ripple remains optimistic about the future. The company anticipates that the digital asset exchange Archax will introduce “hundreds of millions of dollars” worth of tokenized real-world assets onto the XRPL within the next year. Additionally, Ripple reiterated its plan to launch a stablecoin, Ripple USD, during 2024. This stablecoin will be backed by United States dollar deposits, short-term US government Treasurys, and other cash equivalents.
The report was closely followed by news that OpenEden, a tokenization platform, had launched tokenized US Treasury bills (T-bills) on the XRPL. On August 1, it was reported that OpenEden’s TBILL tokens would be backed by short-term US government T-bills and reverse repurchase agreements collateralized by US Treasurys. To ensure compliance and security, minters of these tokens will undergo Know Your Customer (KYC) and Anti-Money Laundering (AML) screening.
Ripple’s latest initiatives and partnerships indicate a strategic pivot towards integrating more real-world assets into the XRPL ecosystem, despite the recent decline in on-chain transaction activity. This move could potentially reignite interest and activity on the XRPL, driving its growth in the coming quarters.
