Analysis of XRP Ledger’s Velocity Trend
The XRP Ledger’s velocity has been on the rise in recent weeks, indicating increased activity and utility within the network.
Understanding Velocity Calculation
- Velocity is calculated by dividing a crypto market cap by its transaction volume.
- An increasing velocity suggests frequent network usage.
- Higher velocity could signal a potential price surge for XRP.
Current Trend in XRPL’s Velocity
The velocity of XRPL is approaching a resistance in a descending trendline, indicating growth in usage and a possible price increase.
Impact of Recent Events on XRP Price
- XRP’s price surged following the US elections, climbing from $0.5319 to $2.82 in less than a month.
- Despite the velocity increase, total deposits in the blockchain have been decreasing.
- XRPL’s total value locked is linked to AMM pools on the blockchain.
Recent Developments to Drive Growth
Ripple Labs, the company behind XRPL, has launched a stablecoin called Ripple USD (RLUSD) to foster growth and liquidity within the network.
Potential Impact of RLUSD on XRPL
- RLUSD could attract traditional companies to tokenize real-world assets on XRPL.
- Ripple aims to provide a regulated token pegged to the US dollar.
- Partnerships and collaborations are expected to drive further growth in XRPL’s usage.
