XRP Ledger (XRPL) just experienced one of the biggest outages this year, as on-chain data shows activity on the Ripple blockchain has dropped by 99%. While this may seem like a major red flag, the decline has not yet had a significant impact XRP pricewhich suggests that the situation may not be as troubling as it seems.

Overview of Ripple’s 99% XRP Ledger Failure

Over the weekend, XRP Ledger trading activity dropped sharply, dropping by approximately 99% in 48 hours. A closer look reveals that the decline is primarily due to timing rather than any larger event technical problem in the book. Typically, cryptocurrency trading volumes drop on weekends. This is because many institutional traders and market makers limit their trading or stop it altogether on weekends, leading to less liquidity and lower payment volumes on the ledger.

Specifically, on-chain data from XRPScans revealed that the volume of XRPL payments between accounts dropped from over 1.09 billion on Thursday, January 8 to 166.99 million on Saturday. This means mass decrease in network usageshowing how much activity can drop over the weekend. Payment volumes are also yet to improve, falling to around 137.40 million as of January 11.

In addition to the decline in volume, the number of transactions executed on XRP ledgers during this period also decreased. XRPScans showed it transactions decreased from over 2 million on Thursday to 1.8 million on Saturday. This decline in both volume and transfers shows that even a compact reduction in the share of immense accounts or institutional users can significantly impact network metrics.

It is worth noting that The price of XRP continues to stay above $2 and remains somewhat unchanged by the recent decline in network activity. While CoinMarketCap data shows its value has declined by more than 4% over the past week, there is no clear evidence linking this to the recent 99% decline in the value of the ledger.

Interestingly, just a few days before the XRP crash, Ledger saw a major surge augment in whaling transactionseach valued at $100,000 or more. This suggests that despite fleeting network fluctuations, the XRP network continues to see significant activity and commitment from core holders.

XRPL developer releases modern update for Ledger

Vet, XRPL validator and developer dUNL, has common modern XRP ledger update, revealing that immense batch corrections and correctionss is now approaching the activation timer. This marks a critical step for the blockchain network, promising improved functionality and security for developers and users.

Vet stated that the upcoming changes include several essential features, including TokenEscrow, AMMClawback, Multi-Purpose Tokens (MPT), and Price Oracle. He emphasized that the XRP development team remains committed to maintaining top ledger performance. He added that the team is also working diligently to ensure all features run smoothly, regardless of the current market price of XRP.

Featured image from Freepik, chart from Tradingview.com