XRP’s On-Chain Volume Crashes by 90%—What’s Behind the Drop?

XRP has recorded a sharp 90% decline in on-chain payment volume, falling from 1.1 billion to just 100 million XRP in recent weeks. The drastic drop raises concerns about network activity, liquidity, and investor confidence in the asset, even as XRP’s price remains relatively stable at $3.10.

XRP’s blockchain has seen a significant reduction in transaction volume, particularly in payments, which previously maintained a steady level above 1 billion XRP. Analysts believe the drop could be due to a decrease in institutional use cases, reduced cross-border transactions, or shifting market dynamics affecting Ripple and its associated projects.

Despite the on-chain slowdown, XRP’s price has not yet reflected the decline, maintaining a bullish stance above the 50-day Exponential Moving Average (EMA). Traders are closely watching whether this trend will hold or if the reduced activity will lead to a potential price correction.

Why Is This Important?

• A 90% drop in transactions could indicate a cooling network, with fewer active participants using XRP for payments.
• Ripple has been actively expanding its real-world partnerships—if fewer transactions are happening, it could signal a shift in how XRP is being utilized.
• Historically, such sharp declines in on-chain volume have preceded market pullbacks, making investors wary of potential downside risks.

Ripple’s Role and Institutional Impact

Ripple, the company closely associated with XRP, has been expanding its global payment solutions, securing strategic partnerships with financial institutions. However, a slowdown in on-chain payments suggests that either banks and institutions are using XRP less frequently or that a shift toward off-chain settlement solutions is occurring.

Ripple has not yet commented on the reason behind the transaction volume decline, but some market analysts believe that regulatory uncertainty and changing payment trends could be contributing factors.

Price Outlook—Will XRP Hold Its Gains?

XRP has remained above key support levels, trading around $3.10, with resistance at $3.20 and $3.50. A breakout above these levels could push XRP toward $4.00, while failure to maintain current support could lead to a drop below $3.00.

While reduced transaction volume does not immediately impact price, it could be a warning sign of lower demand, which may eventually trigger a downturn. Investors are watching closely to see if on-chain volume recovers or continues to decline, which could shape XRP’s price trajectory in the coming weeks.

What’s Next?

Market participants will be monitoring whether XRP’s on-chain activity rebounds or continues to decline. If transaction volume remains low, a sell-off may follow, especially if traders lose confidence in XRP’s real-world usage. On the other hand, a recovery in payments and institutional adoption could help sustain XRP’s bullish trend.

For now, XRP remains in a critical position, with traders and long-term investors awaiting signs of strength or further weakness in the network.