XRP token has hit some significant milestones over the past week and is among the best performer in the altcoin troupe. While all eyes are on the Ripple vs SEC lawsuit, the token’s on-chain metrics have shown some promising signs.
According to data analytics platform Santiment, the XRP network’s Age Consumed and Active Addresses have tapped over year highs recently.
“In addition to several massive active address spikes firing off, there have been massive dormant tokens shifting addresses this week,” the study revealed.
As illustrated in the chart below, the asset’s 208k Active Address count on 23 July was the highest since February 2020. Similarly, its movement of a staggering 854 billion dormant tokens was also soaring to an all-time peak since December 2020.
Per Santiment Academy, Age Consumed shows the number of tokens changing addresses on a specific date, multiplied by the time since they last moved. Spikes on the graph indicate a large number of tokens moving after being idle for a considerable period of time.
This metric is often used to track local tops, but it can also be used to see signs of dormant tokens moving with the intention of pushing prices UP.
On the other hand, Active Addresses highlight daily users’ activity on the blockchain.
That said, the XRP network recently saw its largest drop in Mean Dollar Invested Age [MDIA] since December 2021. In that 5-day MDIA drop, the price of XRP surged by more than 19%.
XRP’s Dormant Coins On the Move
According to a blog by the Santiment Academy, Mean Dollar Invested Age is defined as the average age of the dollars that are invested in a given asset.
When a token’s MDIA rises, it means that the investments are becoming more and more dormant over time.
And if the MDIA continues to climb, this implies that there is some stagnancy on that coin’s network which makes it hard for prices to remain bullish.
Contrary to that, if MDIA starts to fall, this is an indication that dormant addresses are beginning to ‘Resurrect’ indicating that an uptrend is much more likely to occur in the asset’s price action.