According to a report by crypto analytics firm Messari, in the second quarter of 2023, Ripple's XRP altcoin experienced a drop in market capitalization.
The Report Published by Messari Contains Lots of Important Data About XRP
Despite the increase in the first quarter, XRP's market capitalization in circulation fell 10.7% from the previous quarter (QoQ) to $24.8 billion from $27.8 billion.
The report revealed that the average daily non-fungible token (NFT) transactions on the XRP Ledger (XRPL) rose 12.7% from the previous quarter, from 13,800 to 15,500.
However, average daily transactions and average daily active addresses in XRPL were down 11.9% and 17.6% respectively from the previous quarter. Except for NFT activity, most measures of network activity showed a downward trend in Q2.
Despite the drop in market value, XRPL continued to expand in new directions with the launch of sidechains like Coreum and Root Network. ,
As of Q2 2023, XRPL's native token, XRP, ranks sixth in terms of market cap, with a valuation of $24.8 billion. XRPL allows an average of about 15 transactions per second, but has the potential to support 1,500 transactions per second. Transactions on XRPL have deterministic costs, and most transaction types are priced at 10 drops, one millionth of an XRP.
The report noted that XRPL experienced a decline in network activity metrics in Q2, similar to other major Tier-1 networks. Average daily transactions decreased by 11.9% compared to the previous quarter and regressed to the levels last seen in the 3rd quarter of 2022, while average daily active addresses decreased by 17.6% compared to the previous quarter to the lowest level of the year.
Despite the decline in active addresses, the number of net accounts increased by approximately 30,000 to 4.68 million total accounts, up 0.7% in Q2. However, while new addresses decreased by 1.3% to 138,800, the number of deleted addresses increased by 366.9% compared to the previous quarter and reached 107,100, the highest level of the last year.
Regarding the financial situation of XRP, the report stated that the circulating market cap decreased by 10.7% from the previous quarter to $24.8 billion, lagging behind the 0.4% increase in the total crypto market cap. Despite the drop, XRP's market cap has increased by 42.5% year-to-date thanks to the significant gain in Q1. XRP's price fell 11.7% from the previous quarter to $0.47 from $0.54.
The XRP price rebounded close to the yearly high in June after the decline in early May. The report states that some of XRP's recent price action has been influenced by news concerning the ongoing SEC lawsuit with Ripple that began in 2020.
By burning the transaction fees on XRPL, deflationary pressure was created on the total supply of 100 billion XRP. The report stated that nearly 10 million XRPs have been burned since the inception of XRPL. However, 1 billion XRP is given to Ripple each month, with unspent or undistributed XRP being returned to the escrow account.
According to the report, the best tokens by market capitalization in XRPL include Sologenic (SOLO) with $60.5 million, Coreum (CORE) with $10.4 million, and CasinoCoin (CSC) with $8.2 million.
*Not investment advice.
