XRP Ledger Transactions Experience Surge of 108% in Q1 2024 as Fees Plummet by 45%
During the first quarter of 2024, the XRP Ledger (XRPL) witnessed a remarkable increase of 108% in the number of transactions, while fees saw a significant decline of 45%. This data was disclosed by Ripple in its latest quarterly crypto market report. Notably, the number of transactions on XRPL surged from 121,031,713 in Q4 2023 to 251,397,881 by the end of Q1 2024.
While transaction volume soared, the average transaction fee on XRPL dropped by 45% compared to the previous quarter. In Q4 2023, the average transaction fee reached a high point of $0.001546, primarily driven by extensive testing of inscriptions on the ledger. However, by the end of March 2024, the average transaction fee had decreased to $0.000856. Ripple noted that this reduction indicates a normalization of activity, with no reported network congestion throughout the first quarter of 2024.
Furthermore, the XRP transaction volume on the native decentralized exchange (DEX) experienced a 5% quarter-over-quarter growth. The DEX recorded an XRP trading volume of $57,618,270 in Q1 2024, compared to $54.9 million in the previous quarter.
Additionally, XRP tokens burned for transaction fees doubled in the first quarter of 2024, marking a 101% increase from Q4 2023 figures. A total of 636,184 XRP were burned in Q1, compared to 317,271 XRP burned in Q4 2023.
However, Q1 welcomed fewer new market participants in the XRP ecosystem, with an 11% reduction in the creation of new wallets. Only 185,809 XRP wallets were created in Q1, compared to 208,522 in Q4 2023. This trend suggests that existing users are engaging more actively with the network.
Ripple’s XRP market value experienced a quarter-over-quarter crash of 5%, with the average price dropping from $0.59 in Q4 2023 to $0.56 by the end of Q1 2024.
The report also provided an update on Ripple’s XRP reserves. As of December 31, 2023, Ripple held a liquid XRP balance of 5,077,658,695, with an additional 40.7 billion XRP in escrow. By the end of Q1 2024, the spendable XRP decreased to approximately 4.84 billion, while the escrowed amount diminished to 40.1 billion.