The first quarter of 2024 proved to be a period of significant growth for the XRP Ledger (XRPL), as daily transactions increased by an impressive 113%, reaching a total of 2.7 million. This data was revealed by crypto analytic firm Messari in a recent study that examined the network dynamics of XRPL during this time frame. The study highlighted an overall surge in network activity across various metrics.
One of the most notable positive metrics was the average daily transactions and active addresses. In the previous quarter, Q4 2023, the daily transactions averaged 1.3 million. However, this number experienced a substantial increase of 113% in Q1 2024, reaching 2.77 million. Similarly, the average daily active addresses also saw growth, rising by 37% from 30,000 in Q4 2023 to 41,000 in Q1 2024.
The report also shed light on the influence of inscriptions on the XRPL network. It revealed that a significant portion of transaction activity stemmed from a limited number of accounts sending transactions to a single recipient. Approximately 45,000 accounts were responsible for directing over 30 million transactions to one account. These activities were primarily related to inscriptions, which are NFT-related transactions that gained popularity on the Bitcoin network in early 2023. Inscriptions have since emerged on various major networks and sometimes lead to network outages due to the high volume of activity. XRPL reached a peak activity level of over 80 transactions per second on December 31, 2023, with a total of 6.9 million transactions. The report attributed the bulk of the inscription activity on the network to XRP Script.
Interestingly, despite the peak inscription activities in December, XRPL did not experience any network disruptions.
In terms of new wallet creation, the report revealed that the net count of XRPL accounts increased by 150,000, pushing the total number of accounts up by 3.1% to 5.15 million in the first quarter. However, there was a 12.4% decrease in the creation of new addresses compared to the previous quarter, which the report attributed to the unusually large number of addresses generated in Q4 2023. On a year-over-year basis, XRPL saw a 29.8% increase in new addresses from Q1 2023 to Q1 2024. Additionally, there was a 55.9% rise in account deletions quarter-over-quarter, totaling 33,000, which coincided with the decline in inscription activity.
The significance of account creations and deletions on XRPL is unique compared to most networks, as accounts require a deposit for creation, which can be recovered upon account deletion. This feature makes XRPL’s account metrics more indicative of genuine activity, unlike other networks where accounts can be created en masse at no cost, potentially leading to spam or Sybil attacks.
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