XRP, the sixth-largest cryptocurrency by market capitalization, has seen an captivating trend in its trading activity, despite some notable declines in other metrics.

Recent analysis by CryptoQuant analyst Wenry sheds lightweight on key trends in the XRP ecosystem, offering insight into the activity happening behind the scenes. Specifically, the analyst revealed where XRP transactions are being used according to category activity.

XRP Transactions: NFT Activity Declines and DEX Volumes Enhance

According to Wenry, XRP’s daily transaction volume is “competitive with major Layer 1 networks,” which shows that Ledger XRP remains very energetic despite being less known to retail investors than other blockchain networks.

In his analysis published on the CryptoQuant QuickTake platform, Wenry highlighted that between September 15 and October 15, 2023, the number of fresh wallets on the XRP Ledger platform increased by 10.39%, reaching a total of 18,321 fresh accounts.

However, the total number of transactions on the network fell by 17.57% to 18.82 million, and payments by 26.16% to 6.81 million. Despite these declines, the number of energetic wallets on XRPL increased by 14.19%, indicating continued user engagement with the platform.

These numbers suggest that while fewer transactions are being processed, the energetic user base continues to grow. Wenry’s analysis looked at on-chain activity related to token trading and decentralized exchange (DEX) volume.

While the total number of transactions on the XRP Ledger decreased by 6.83%, the decentralized exchange volume increased by 17.64%, from $3.91 million to $4.60 million.

This change suggests that despite a slight decline in total volume, there has been more activity on decentralized platforms, indicating continued interest in decentralized finance (DeFi) solutions on XRP Ledger.

When it comes to non-fungible tokens (NFTs), the analysis showed a significant decline in NFT activity on XRPL. NFTokenMint, which tracks fresh NFTs created on the network, dropped 70.66%, from 65,021 to 19,076.

Similarly, NFTokenAcceptOffer, which represents the acceptance of offers to purchase NFTs, dropped by 30.88%. Despite these declines, the NFTokenCancelOffer indicator, which tracks canceled NFT transactions, rose slightly by 0.20%, indicating that while fewer NFTs were being minted or traded, some stability remained in the broader NFT ecosystem.

AMM liquidity and increased participation

A key point of analysis was the forceful rise in Automated Market Maker (AMM) liquidity on the XRP ledger. AMM-related metrics saw significant growth: AMDeposit rose 62.35%, AMMCreate rose 143.10%, and AMMWithdraw rose 42.97%.

These increases reflect growing confidence in liquidity pools on XRPL as more participants provide liquidity and create fresh pools. The surge in AMMCreate, which increased from 58 to 141, suggests that more users are participating in keeping the network flowing.

However, one area of ​​decline in AMM-related activity was AMMBid, which dropped 81.82%. Despite this decline, the overall enhance in liquidity deposits and the creation of fresh pools indicate that XRP Ledger’s decentralized liquidity offering remains forceful.

According to Wenry, these indicators highlight growing confidence in existing liquidity pools and the broader AMM ecosystem on the XRP ledger.

Featured image created with DALL-E, chart from TradingView