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- XRPL developer activity is on the increase but XRP price is yet to soar, finding stability at $0.50.
- While small-scale investors continue to increase their holdings, large-scale investors remain cautious due to wider market movement and investor sentiment.
Development activity on the XRPL (XRP Ledger) has come around after a striking drop in mid-April. In compliance with on-chain data from Santiment, a metric that measures developers’ activity on the blockchain, states that developer activity ascended with a noteworthy increase from a low of 0.28 to 0.49.
XRPL is the decentralized public blockchain that facilitates all XRP, FIAT, and Other digital assets transactions on the blockchain.
Higher developer activity is a clear indication that developers are working effortlessly for smooth and easy running of the ledger. This incurs fixing bugs, strengthening the blockchain for effective transactions. On the other hand, a decline in developer activity signals lower participation from developers in relation to the blockchain. Furthermore, developer activity signifies technological advancements.
While developer activity can from time to time correspond to price surges, there have been events where the prices remain unchanged or worst-case scenario drop.
Nevertheless, a rise in development activity on a ledger, in this case, the XRPL does not mean there will be a rise in transactions. At the time of writing XRP is trading at $0.50, remaining unchanged from the previous day’s price.
Whereas such events tend to bolster investor activity, data from key metrics indicate that there has been a huge decline in the number of active addresses. A major metric that tracks transaction levels in the blockchain. However, In the last 24 hours, user engagement and activity have tragically fallen to 16,600. This rather suggests that active XRP addresses have been reduced.
Investigating further as proof of the decline in user engagement is the decline in a one-day transaction. XRP’s one-day transactions have dropped from 1 billion recorded in early May to 132.28 million in recent days. This drop indicated that investors are either prudent or have diverted their attention to other digital assets.
This could be glad tidings for long-time XRP investors. Trading at $0.5 presents a buying opportunity. Speculations from analysts expect XRP to hit a high of $3 which could yield huge profits but there is no guarantee such a target will come to pass.
Looking deeper into XRP holder Addresses, data has shown that small-scale holders with 1 to 100 XRPs have been increasing their holdings. This is an indication of a more bullish sentiment among small-scale investors. On the contrary, holders who owned 1000 to 1 billion XRPs have been selling their XRP assets. This signifies that XRP whales are more cautious.
In conclusion, while the rise in developer activity could be a good sign for XRP, the stagnant XRP price could be a result of the wider market movement and investor sentiment.
