Tech

XRP in Q2: Of SEC lawsuits, dwindling metrics, volatility and much more

07/09/2023
Bitcoin Ethereum News


  • Circulating market capitalization of XRP fell by 10.7% Quarter on Quarter, from $27.8 billion to $24.8 billion.
  • Q3’s beginning was also not at par as its price had declined by nearly 3% 

 Ripple [XRP] witnessed a rollercoaster of ups and downs in terms of its on-chain metrics during the second quarter of 2023. Messari recently posted its latest XRP Q2 report, highlighting how its network activity, value, and price reacted in Q2 2023.

A look at the statistics in Q3 did not paint a happy picture for XRP either as its price registered a decline. Will XRP be able to meet investors’ expectations in the third quarter of the year?  

How much are 1,10,100 XRPs worth today   

XRP’s Q2 did not go as planned

As per Messari’s analysis, the circulating market capitalization of XRP fell by 10.7% quarter-on-quarter, from $27.8 billion to $24.8 billion, trailing the 0.4% rise in the market capitalization of other cryptocurrencies. The token’s price fell 11.7% QoQ from $0.54 to $0.47 as a result of the 1.1% QoQ inflation rate. Despite this, it was interesting to note that XRP’s market cap stayed up 42.5% year to date, which can be attributed to the rise in its value in Q1.

The Ripple vs. SEC lawsuit also played a role in affecting the blockchain’s metrics. For instance, XRP’s price action in recent months was affected significantly by SEC’s ongoing case with Ripple, which began in 2020. The massive revenue spike in June also occurred after the news of the lawsuit. 

Not only did Messari’s report highlight XRP’s performance, but it also took into account XRPL’s state. As per the analysis, XRPL’s network activity metrics took a decline across the board in Q2. Average daily transactions declined 11.9% QoQ from 1.32 million to 1.16 million. This meant that it returned to a level last seen in Q3 2022.

Source: Messari

The number of average daily active addresses fell significantly as well, from 66,000 to 54,000, or down 17.6% QoQ. The good news was that the total number of accounts climbed by 0.7% to 4.68 million in Q2, while the number of new addresses during the quarter was virtually equal to Q1. 

XRP and NFTs in Q2

The NFT ecosystem was one of the few areas in which the blockchain registered growth in the last quarter. NFT transactions on average rose from 13,800 to 15,500 per day, a 12.7% QoQ rise.

Among the transactions, NFTokenAcceptOffers witnessed the highest growth as it went from 3,100 to 3,900, up by 25.5% QoQ. As per Messari’s report, NFTokenCreateOffers grew by the largest absolute terms, increasing by over 1,000 average daily calls in Q2.

Source: Messari

A look at Santiment’s chart revealed how market sentiment was around XRP during the last quarter. Social volume seemed to have declined over the months. However, a spike was noted in the month of June. This can be attributed to the rumors that came out at that time regarding the lawsuit. The rumors suggested that the case might soon come to an end, sparking positive sentiment in the community, as evident from the sharp rise in its weighted sentiment. 

Source: Santiment

How is XRP in Q3 2023?

The third quarter also did not start on a good note for XRP in terms of its price action, as it did not align with investors’ interests. According to CoinMarketCap, XRP was down by nearly 3% over the last week. At the time of writing, it was trading at $0.4697 with a market cap of over $24 billion, making it the 6th largest crypto.

The beginning of the quarter also witnessed a decline in interest from investors in trading the token, as evident from the drop in its trading volume. However, its MVRV Ratio recovered slightly in the last few days, which was a positive signal. Its Binance funding rate was also green, reflecting its demand in the derivatives market.

Source: Santiment

Realistic or not, here’s XRP market cap in BTC‘s terms     

A look at XRP’s daily chart suggested that investors should expect a few more slow-moving days. This seemed likely as both the Relative Strength Index (RSI) and Money Flow Index (MFI) took a sideways path near the neutral zone.

The MACD’s data revealed that the bulls and the bears were in a battle. Which one of them turns out to be victorious will be interesting to watch. 

Source: TradingView

 

Source: https://ambcrypto.com/xrp-in-q2-of-sec-lawsuits-dwindling-metrics-volatility-and-much-more/