Key Takeaways
- XRP’s market cap soared 246% QoQ in Q4 2024, outperforming BTC, ETH, and SOL combined.
- New XRP-related ETFs and ETPs expanded accessibility, boosting adoption.
- XRPL’s transaction growth highlights its increasing user activity and ecosystem development.
At the close of Q4 2024, XRP cemented its position as the fourth-largest cryptocurrency by market capitalization, reaching $119.5 billion. According to Messari, this represented a 246% QoQ surge, far surpassing the 44% combined growth of Bitcoin, Ethereum, and Solana. Its price rose 241% QoQ, with the discrepancy attributed to a 1.6% increase in circulating supply.
The notable move came after the great innovation where WisdomTree joined Bitwise, Canary, and 21Shares in applying for an XRP ETF as its European ETP became active on major exchanges last November, but more remarkably, Robinhood was allowing trades to take place for the Ripple token along with Grayscale introducing its trust- the sure indication that institutional involvement is growing.
XRPL continued to follow its deflationary approach by burning transaction fees, consequently reducing its total supply. Since the creation of the blockchain network, around 13.3 million tokens, or about $27.8 million, has been burned.
At the same time, the monthly escrow releases of 1 billion tokens balance out the burn rate at $610 million as of Q3 2024. The escrow mechanism assures gradual liquidity supply for stability, accompanied by an increase in future supply-driven deflationary effects.
XRP Ledger’s Active Addresses Surge 99% in Q4 2024
Q4 2024 marked the turning point for the XRP Ledger, with network activity reaching unprecedented highs: new addresses grew 382% QoQ to 507,000, and active addresses jumped 99% to 56,000.
On the network, one has to deposit at least 1 token to create an account, hence making the network more reliable due to reduced spamming compared to other networks. In December, reducing the reserve requirement from 10 XRP to 1 XRP lowered the barriers to entry even further. Despite an 8% decline in payment transactions, average daily transactions rose 3% to 1.8 million, which included payments, NFTs, and account deletions.
Meanwhile, the DeFi and NFT sectors have visibly grown, with the market capitalization of the network-issued tokens leaping a staggering 176% QoQ to $264 million. Memecoins and decentralized exchanges drove this, with exponential increases in DEX activity. Furthermore, Ripple’s USD-pegged stablecoin RLUSD, launched in December, gridlocked liquidity and pairing options for its users.
NFT Transactions on XRPL Skyrocket by 460% in Q4 2024
NFT activity thrived due to a massive 460% climb in total transactions, mainly because of minting and burning activities. More than 7.5 million NFTs have been minted under the XLS-20 standard already, and most integrations are already broad, ranging from gaming and tokenized assets to carbon credit programs.
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