- XRP processes 7.84 transactions per second, lagging behind Solana but leading Cardano, raising concerns about scalability.
- XRP network activity surged 620% in a week, with over $5.37 billion transferred in one day, indicating renewed market interest.
- XRP rebounded to $3 before dropping to $2, with inflows suggesting buyer interest, though selling pressure remains a key risk.
According to analyst Marty Party, XRP processes 7.84 transactions per second, substantially behind Solana and leading Cardano. He noted that XRP’s market cap is at $144.5 billion despite its lower adoption rate.
XRP Transaction Speed Raises Questions
This discrepancy has raised questions over whether XRP’s valuation aligns with its actual usage. The analyst argued that both XRP and Cardano have not been tested under large scale transaction loads.
He cautioned that if they fail under increased demand, their prices could drop by 90%. Additionally, he suggested that XRP might be positioned as a store of value, but it lacks the security level of Bitcoin due to fewer nodes. He questioned the reasoning behind XRP’s high valuation and its purpose in the market.
XRP Sees Surge in Activity Despite Concerns
Despite Party’s concerns, data shows a sharp increase in XRP activity. Analyst Ali reported that over $5.37 billion worth of XRP was transferred in a single day. Furthermore, the number of active XRP addresses surged by 620% in one week, rising from 74,589 to 462,650.
This increase in network activity suggests renewed interest in XRP. Additionally, Whale Alert reported a transfer of 95,254,697 XRP, valued at approximately $235.6 million, from OKX to an unknown wallet. These movements indicate high liquidity in the XRP market, though whether this translates to sustained growth remains uncertain.
XRP Price Movement and Market Trends
XRP’s price remained below $1.00 from May to October, with mostly neutral or negative netflows. A bullish rally occurred between November and mid December, pushing XRP’s price to $3.87 amid rising inflows.
This period saw strong accumulation, driven by institutional investors, RLUSD launch and large holders. However, selling pressure increased in late December, leading to a price decline to around $2.00.
Notably, January and February had large outflows, aligning with price corrections. In late February and early March, XRP rebounded to $3 before pulling back to $2. Some positive netflow spikes suggest that buyers are returning at lower levels. The price remains dependent on whether inflows can counterbalance the ongoing selling pressure.
