XRP, the native cryptocurrency of the XRP Ledger (XRPL), has gained recognition as a solution for fast and low-cost cross-border transactions. Yet, a fundamental question arises: what is the actual value being transacted through the network on a daily basis? This blog post aims to investigate the daily transaction volume of XRP and the factors that influence it.
Recent Surge in XRP Volumes
According to recent data from Glassnode, XRP’s daily transfer volume typically fluctuates between $300 million and $1 billion. However, following the reelection of Donald Trump in November 2024, XRP’s daily average surged to approximately $2.28 billion, suggesting increased network activity, possibly correlated with a notable rise in XRP’s market price during this period.
Speculative Activity and Transfer Spikes
It is important to note that these significant spikes in transaction volume may not necessarily indicate substantial payment activity or ongoing adoption. Instead, they could be driven by speculative trading, transfers involving Ripple, and substantial movements by large holders, often referred to as ‘whales’.
The Role of Ripple’s Transactions
Much of the high daily transfer volume can be attributed to major token sales initiated by Ripple and its co-founder, Chris Larsen. In 2024, for instance, Larsen made headlines when he transferred 50 million XRP (approximately $29 million) from a dormant wallet. By early 2025, his total sales exceeded $116 million and significantly reduced his XRP reserves.
Ripple’s Escrow Strategy
Since its inception, Ripple has employed an escrow strategy, locking 55 billion XRP in contracts, releasing a monthly allowance while returning any unsold tokens. The sale of XRP by Ripple tends to coincide with bullish market conditions, often resulting in noticeable spikes in overall transfer volume.
Comparative Performance Against Bitcoin and Ethereum
Despite XRP’s substantial transaction volumes, Bitcoin and Ethereum continue to outperform it. Bitcoin’s average daily transfer volume reaches approximately $23.26 billion, while Ethereum’s hovers around $5.67 billion. These figures reflect a broader adoption and confidence in their ecosystems, unlike XRP which appears to be more cyclical.
Implications of Transfer Volumes
Transfer volume serves as a critical metric for assessing on-chain activity. High and sustained volumes generally point to increased user interaction with the blockchain. While Bitcoin and Ethereum benefit from consistent inflows from institutional investors and decentralized finance (DeFi) platforms, XRP’s volume activity seems to align more with speculative trading rather than practical utilization in cross-border payments.
Recent enhancements in the XRP Ledger, including features for stablecoin issuance and EVM compatibility, indicate potential for future growth. However, as observed, these expansions have yet to translate into volume metrics comparable to those of Bitcoin and Ethereum.
Disclaimer: This article does not constitute investment advice. Every investment decision carries risks, and it is recommended that individuals conduct their own research before making financial decisions.
