XRP was one of the altcoins that rose the most last year following Donald Trump's presidential victory, but recently it has been making headlines due to its declines.
The decline in XRP wasn't just a price drop; XRP transaction fees also saw a significant decrease. Analysts said this could lead to a deeper price correction in XRP.
According to onchain data provider Glassnode, total daily transaction fees on the XRP Ledger (XRPL) have fallen significantly since the beginning of the year.
Data revealed that XRP transaction fees have fallen to levels last seen since December 2020, at 650 XRP per day.
Glassnode wrote the following in its post:
“The total daily transaction fees paid on XRP have dropped from approximately 5,900 XRP on February 9th to around 650 XRP.”
This represents an 89% drop compared to the levels seen since December 2020.
In addition to the decrease in transaction fees, there has also been a sharp drop in XRP futures open interest (OI).
Glassnode noted that OI experienced a 59% decrease, falling from 1.75 billion XRP in early October to 0.74 billion XRP.
Lastly, it was noted that XRP funding rates also fell from 0.01% to 0.001% (7-day moving average). According to analysts, this indicates a decrease in confidence among derivatives market investors that XRP can recover.
Analysts recently pointed out that a descending triangle pattern has formed in XRP, indicating a risk of the price falling to $1.73.
*This is not investment advice.
