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XRP’s Daily Active Addresses on the Rise Despite Rally Hitting Pause Button

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Tue, 08/25/2020 - 06:13
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Alex Dovbnya
XRP continues to see a relatively high number of daily active addresses despite a 9.2 percent pullback
XRP’s Daily Active Addresses on the Rise Despite Rally Hitting Pause Button
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XRP, the third-largest cryptocurrency by market capitalization, has seen an uptick in daily active addresses (DAA) in spite of its rally hitting the pause button.

According to cryptocurrency analytics platform Santiment, XRP is only one of the few altcoins that are currently displaying such a bullish divergence.      

XRP
image by app.santiment.net

XRP’s active addresses far below the February peak    

The number of XRP’s DAA recently climbed to a seven-day high of 9,499 on Aug. 24 despite the coin retracing 9.2 percent over the past week.    

XRP registered the highest number of DAA (70,944) since its creation on Feb. 13. For comparison, the cryptocurrency had only 50,583 active wallets when it hit its lifetime peak of $3.11 on Dec. 28, 2017. 

Santiment
image by app.santiment.net

This ended up being an anomaly rather than a persistent trend given that it dropped precipitously the following day.    

Related
Coinbase Now Allows Bitcoin, Ethereum, XRP Holders to Pay for Goods Directly from Their Accounts

Bitcoin and Ethereum leave XRP in the dust 

Notably, the number of XRP’s daily active addresses remains infinitesimally low compared to Bitcoin and Ethereum.

As reported by U.Today, BTC reached 1,120,216 active wallets, a new 2020 high, on Aug. 7. After BTC dipped below the $11,500 level on Aug. 22, the crypto king continued to average more than 900,000 daily active addresses, which is close to 12,000 percent higher than XRP.

Ethereum is sitting at 400,000 daily users after reaching a local peak of 523,470 on July 28.

Such a huge gap between XRP and the two biggest cryptocurrencies can be explained by the fact that the XRP Ledger has the “destination tag” feature that allows creating subaddresses, according to developer Matt Hamilton:

“XRP is much more efficient than BTC with addressing as it has destination tags to facilitate subaddressing. So a single XRP address can service an entire exchange.”   

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.