XRP Sees Increase in Network Activity but Trails Bitcoin and Ethereum

XRP (XRP$2.12), the native cryptocurrency of the XRP Ledger (XRPL), has long been promoted as a high-speed, low-cost solution for cross-border payments. Recent data suggests a surge in its daily settlement volume, particularly following Donald Trump’s re-election as US president in November 2024. However, despite its price rally, XRP’s transaction volume still lags behind Bitcoin and Ethereum.

XRP Settlement Volume Rises Post-Election

According to blockchain analytics firm Glassnode, XRP’s daily transfer volume has typically ranged between $300 million and $1 billion. However, since November 2024, the figure has significantly increased, with an average of $2.28 billion in daily settlements. This sharp rise suggests heightened activity on the network, likely fueled by the cryptocurrency’s price appreciation.

Despite this uptick, analysts caution that these figures do not necessarily indicate sustained adoption. Instead, much of the increased volume may be attributed to speculative trading, large-scale transfers by Ripple, whale movements, and reshuffling of funds between exchanges.

Ripple’s Role in Major XRP Transfers

A key factor behind the spikes in XRP’s daily transfer volume is large token sales by Ripple and its co-founder, Chris Larsen.

Chris Larsen’s XRP Sales (2024–2025):

• On 18 September 2024, Larsen transferred 50 million XRP (~$29 million) from a wallet that had been inactive for over 11 years.
• By early 2025, he had sold over $116 million worth of XRP.
• His XRP holdings dropped from 500 million to 410 million tokens.
• Between 2017 and 2020, the SEC estimated Larsen had sold approximately $453.69 million in XRP.
• The 2024–2025 sales are notable for their scale and the timing of XRP’s rally past $3.

Ripple’s Escrow Sales (2017–2025):
Ripple has been selling XRP from escrow since 2017, releasing up to 1 billion tokens per month. While unsold portions are typically returned to escrow, active sale periods contribute to significant spikes in daily transfer volumes.

• In Q4 2017, Ripple sold $91.6 million worth of XRP during its 30,000% rally.
• Q3 2018 saw $163 million in sales amid volatile market conditions.
• One of Ripple’s largest sales occurred in Q2 2019, amounting to $251 million.
• Sales plummeted to $1.75 million in Q1 2020 due to SEC scrutiny.
• Across 2021, Ripple sold roughly $1.5 billion in XRP, according to company reports.

Ripple’s tendency to increase sales during bullish cycles and scale back in downturns indicates a strategy linked to market conditions rather than organic adoption.

Bitcoin and Ethereum Maintain Market Dominance

Despite XRP’s recent gains, Bitcoin and Ethereum continue to outperform it in daily transfer volume, highlighting their broader adoption and institutional interest.

• Bitcoin’s long-term average daily transfer volume stands at approximately $23.26 billion. In recent months, its 30-day average has surged to $64.03 billion, largely due to ETF inflows and speculative trading.
• Ethereum processes around $2.53 billion in daily transfers on average, though its recent 30-day figure has climbed to approximately $5.67 billion.

These numbers suggest that Bitcoin and Ethereum see far more consistent transaction activity, particularly from institutional players, decentralised finance (DeFi) applications, and exchange-traded funds (ETFs).

XRP’s On-Chain Activity and Future Prospects

Transfer volume is a crucial metric for assessing real-world blockchain adoption. While high transaction volumes often indicate robust usage, XRP’s volume spikes appear more closely tied to trading cycles than to enterprise adoption.

Ripple has made efforts to expand XRP’s utility, particularly through On-Demand Liquidity (ODL) for cross-border payments. However, on-chain activity suggests limited traction among financial institutions.

Recent developments, including XRPL’s support for stablecoin issuance, tokenisation, and Ethereum Virtual Machine (EVM) compatibility, could drive greater adoption. In Q4 2024, the ledger’s Automated Market Maker (AMM) volume increased by 3,100%, pointing to rapid growth in usage.

Despite these advancements, XRP has yet to achieve daily transaction volumes comparable to Bitcoin and Ethereum. Whether its recent surge in activity translates into long-term adoption remains to be seen.