The $XRP Ledger (XRPL) network has seen its active addresses decline by 7,902 over the four days leading up to March 23.
After a spike to a local high of 26,358 on March 19, the XRPL’s active addresses crashed in subsequent days to hover around 15,456 at press time, according to on-chain analytics from CryptoQuant. As such, the XRPL network registered a drop of 41.36% in active users.
Meanwhile, the total number of XRPL’s addresses has increased exponentially in March to hit over 8.1 million at the time of this reporting.
Essentially, the decline in XRPL’s active addresses amid rising addresses could be an indication that traders are watching from the sideline despite the continued adoption on the network.
$XRP price falls on lower active addresses
The notable decline in active addresses on XRPL coincided with the altcoin’s 10% drop last week before a 4% rebound on Monday. The altcoin dropped from $1.54 on last week’s Tuesay to reach a local low of $1.36 earlier on Monday before rallying to $1.46 at the time of this publication.
Typically, a decline in active addresses has been associated with a slump in demand.
What’s next for XRPL?
The XRPL’s active addresses could be heavily influenced by the organic demand for the network. As Finbold reported, a recent study revealed that the XRPL network has more than 53% of its transactions involved in payments.
With Ripple Labs at the forefront of advocating for the mainstream adoption of Ripple Payments, its solution for moving money across both traditional and digital rails, the active users could grow exponentially in the near future.
