XRP Ledger Sees Mixed On-Chain Activity, But AMM Liquidity Provision Surges

Wenry Seoul, a lead analyst at CryptoQuant, recently published an in-depth analysis of XRP Ledger’s on-chain activity, showing mixed metrics.

The analysis, which covered the period between September 15 and October 15, shows that despite the general perception that XRP Ledger is less recognized by retail investors compared to other major Layer 1 networks, its transaction volume remains competitive.

Notably, it provides a breakdown of key on-chain metrics, token activity, NFT trading, and automated market maker (AMM) liquidity.

XRPL Basic On-Chain Metrics Show Mixed Signals

The report highlighted mixed results across XRP Ledger’s basic metrics. New wallet creation rose by 10.39%, with 18,321 new accounts. Likewise, active accounts surged by 14.19%, with 10,887 users engaging with the network daily.

However, total transactions fell by 17.57%, with the ledger processing 18.82 million transactions, while payments dropped even further, down 26.16% to 6.81 million. This divergence between user engagement and transaction volume suggests that fewer transactions are being made per account while more wallets are being created.

AMM Liquidity Provision

Meanwhile, one of the standout metrics from the report is the growth in automated market maker (AMM) liquidity provision. 

AMMDeposit activity rose 62.35%, while AMMCreate surged by 143.10%, showing that users are increasingly providing liquidity to the XRP Ledger’s decentralized pools. 

This is further supported by a 65.22% increase in AMMVote, reflecting active participation in governance. Despite an 81.82% drop in AMMBid, the rise in deposits suggests robust confidence in the existing XRPL liquidity pools.

It’s worth mentioning that the AMM functionality on the XRP Ledger went live in March. Since then, approximately 14 million XRP has been locked in over 3,000 active pools. The total value locked in XRPL AMM pools is even more staggering, totaling a worth of 26.9 million XRP, of which 13.9 million consists solely of XRP tokens.

Token Activity and DEX Volume on XRP Ledger

While token trades decreased by 6.83%, dropping to 6.41 million, decentralized exchange (DEX) activity saw a positive trend. Specifically, DEX volume surged by 17.64%, climbing from $3.91 million to $4.60 million.

Meanwhile, XRP Ledger’s market cap dropped significantly, declining 15.24% to $87.56 million. Yet, the number of listed assets saw a mild spike of 1.17%, suggesting that developers and projects are still interested in launching new tokens on XRP Ledger.

XRPL NFT Trading Activity Declines Across the Board

NFT trading activity on the XRP Ledger witnessed substantial declines. NFTokenMinting, a key indicator of new NFT creation, plummeted by 70.66%. Likewise, NFTokenAcceptOffer dropped by 30.88%, and NFTokenCreateOffer also tanked by 33.30%.

Although there was a small uptick in NFTokenCancelOffer (+0.20%), the broader picture suggests that NFT activity on the XRP Ledger is currently facing a downturn.