XRP Sees Increased Network Activity

XRP, the native cryptocurrency of the XRP Ledger (XRPL), has seen a notable rise in daily settlement volumes following Donald Trump’s re-election in November 2024. Despite this increase, it remains far behind Bitcoin and Ethereum in overall transaction value.

According to data from Glassnode, XRP’s daily transfer volume frequently fluctuated between $300 million and $1 billion before the election. However, since Trump’s victory, the average daily settlement has surged to $2.28 billion. This spike reflects heightened network activity, likely driven by XRP’s price rally rather than sustained adoption for payments.

Speculation and Whale Movements Drive Volume

While the rise in transfer volume may suggest increased usage, much of the activity appears tied to speculative trading, large Ripple-related transactions, and whale movements between exchanges. These factors contribute to the sharp fluctuations in XRP’s daily settlement value.

XRP total transfer volume. Source: Glassnode

A major driver of such volume surges is Ripple’s continued sales of XRP, along with significant transfers by co-founder Chris Larsen. Historical data shows that Ripple has strategically increased sales during bullish market phases, which further inflates the total transaction volume.

Ripple and Chris Larsen’s Influence on XRP Movements

Ripple and its executives have long played a crucial role in XRP’s transaction volume. Since 2017, Ripple has managed XRP’s supply through escrow releases, often selling a portion while locking unused tokens back into new contracts.

Chris Larsen, one of Ripple’s co-founders, has also been actively selling XRP. Key transactions include:

• In September 2024, Larsen moved 50 million XRP (~$29 million) from a dormant wallet.
• By early 2025, he had sold over $116 million worth of XRP.
• His total wallet reserves fell from 500 million to 410 million XRP.
• Between 2017 and 2020, he reportedly sold approximately $453.69 million in XRP.

Ripple itself has historically adjusted its sales strategy based on market conditions. Some notable sales include:

• $91.6 million worth of XRP during its 30,000% surge in Q4 2017.
• $251 million in Q2 2019, marking one of Ripple’s largest single-quarter sales.
• A sharp drop to just $1.75 million in Q1 2020, likely due to SEC regulatory pressures.
• Over $1.5 billion sold in 2021 alone, per Ripple’s reports.

While these transactions contribute to XRP’s daily transfer volume, they primarily serve liquidity and trading dynamics rather than indicating widespread adoption for cross-border payments.

Bitcoin and Ethereum Maintain Dominance

Despite XRP’s rising volumes, Bitcoin and Ethereum continue to lead the market in transaction value. Bitcoin’s daily average settlement volume is estimated at $23.26 billion, with recent 30-day averages reaching $64.03 billion due to strong institutional interest, ETF activity, and speculative trading.

Ethereum also surpasses XRP, with an overall average of $2.53 billion per day and a recent 30-day average of $5.67 billion. The network benefits from high usage in decentralised finance (DeFi), custodial services, and institutional transactions.

XRP’s Adoption Still Limited

While XRP’s growing transaction volume suggests increased activity, its real-world adoption remains limited. Unlike Bitcoin and Ethereum, which sustain high onchain volumes from ETFs, DeFi, and custodians, XRP’s usage is primarily linked to trading cycles rather than widespread enterprise adoption.

Ethereum total transfer volume. Source: Glassnode

Ripple has attempted to expand XRP’s role in cross-border settlements through On-Demand Liquidity (ODL), but blockchain data suggests limited traction. However, recent advancements, including tools for stablecoin issuance, tokenisation, and Ethereum Virtual Machine (EVM) compatibility, could enhance XRP’s utility in the long term.

For instance, in Q4 2024, XRPL’s Automated Market Maker (AMM) activity grew by 3,100%, reflecting a significant increase in usage. Yet, these innovations have yet to drive transaction volumes to levels comparable to Bitcoin and Ethereum.

Conclusion

Despite its recent surge in transaction volumes, XRP remains significantly behind Bitcoin and Ethereum in terms of overall market adoption. While speculation and large transactions from Ripple and its executives contribute to these spikes, sustained enterprise use is still lacking. If XRP is to compete with the leading cryptocurrencies, it will need to demonstrate long-term value beyond trading activity.