XRP is still struggling to recover from the recent price crash that saw it retest multiyear lows. Amid this steady price drop, XRP has seen its network activities continue to decline.
Although the crypto market saw a mild resurgence that witnessed XRP record a notable daily price surge as of Feb. 15, its network activities showed no improvement as the amount of XRP burned as fees on the same day had plunged massively to 126 XRP.
While the asset saw about 519 XRP burned as fees in the previous day, the massive reduction seen the following day included the XRP burn rate declining by a massive 75% in just 24 hours, according to data provided by XRPSCAN.
XRP still up for recovery?
The massive crash in XRP network performance has been largely fueled by the bearish sentiment looming across the crypto market since the recent volatility began a few weeks ago.
While the price of assets has often remained in red territory, investors' confidence is beginning to grow weak, and many traders are beginning to move with caution.
The fading momentum has played a large role in the notable decline in the XRP burn rate, as demand appears to have stalled with no major growth. Rather, the market is only witnessing growing selling pressure.
While XRP has been showing mixed price action since the new week, kickstarting the week on a slightly bullish trail, it is quite difficult to predict XRP’s next price move with this metric as it does not pose any major or immediate impact on the asset’s potential price movement.
Nonetheless, data from CoinMarketCap shows that XRP has declined by 2.53% over the last 24 hours, and it is trading at $1.45 as of writing time.
While it remains unclear whether XRP would recover from the low price level anytime soon, the slowdown in its network activity coupled with the poor performance from XRP ETFs does not provide a positive outlook for its potential price movement.
Vladislav Sopov
Dan Burgin