XRP is still trading in red territory despite the broad crypto market showing signs of a potential rally, where other major cryptocurrencies like Bitcoin and Solana are already showing mild price increases over the last day.
Nonetheless, a key on-chain indicator on the XRP Ledger is flashing a bullish signal, suggesting that XRP’s rally may already be around the corner.
XRP network velocity up 40.88%
According to data from on-chain analytics platform Cryptoquant, XRP network velocity has surged by 40.88% in the past 24 hours, showing signs of renewed activity as momentum appears to be returning to the market.
Usually, such a notable surge in the network velocity of XRP signals a notable increase in how frequently XRP tokens are moving across the network.
Notably, the data further shows that XRP’s velocity now stands at 0.004645, marking one of the sharpest short-term increases seen in recent weeks.
What does this mean for XRP?
It is important to note that velocity measures how often a token is transferred within a given period and is widely viewed as a way to measure network usage and transactional demand. A rising velocity often suggests growing participation from traders, institutions or payment-related activity on the blockchain.
As such, the 40% increase in XRP’s velocity seen over the last 24 hours has restored hopes for a potential rally in the price of XRP in the near term.
Despite the spike in activity, XRP’s total supply remains unchanged at 99.9857 billion tokens, indicating that the increase is not driven by new token issuance but by existing coins circulating more actively.
This has further triggered optimism among investors, as higher circulation without the production of new supply shows an impressive increase in demand for the concerned asset. As such, XRP might commence its rally soon, where it can reclaim the crucial $2 level once again.
Denys Serhiichuk
Caroline Amosun
Tomiwabold Olajide
Godfrey Benjamin
Gamza Khanzadaev