Key Takeaways
- XRP’s circulating market cap experienced a quarter-on-quarter decline of 10.7%, dropping from $27.8 billion to $24.8 billion
- XRPLs reached 138,790āan impressive growth of 31.8% compared to the same period last year
In a recent report by crypto analytics platform Messari, the performance of Ripple’s XRP token in the second quarter (Q2) of the year was analyzed. This report holds particular significance as Ripple has been embroiled in a prolonged legal battle with the Securities and Exchange Commission (SEC) for over two years.
According to Messari’s analysis, XRP’s circulating market capitalization experienced a quarter-on-quarter decline of 10.7%, dropping from $27.8 billion to $24.8 billion. This decrease contrasts with the 0.4% rise in the market capitalization of other cryptocurrencies during the same period.
The token’s price also fell by 11.7% QoQ, from $0.54 to $0.47, primarily due to a 1.1% QoQ inflation rate. However, despite this decline, XRP’s market cap managed to maintain a 42.5% increase year-to-date, largely attributed to its value surge in Q1.
The legal battle between Ripple and the SEC has significantly influenced XRP’s price action in recent months. Notably, there was a substantial revenue spike in June following news of the lawsuit. Messari’s report not only shed light on XRP’s performance but also examined XRPL’s state.
The analysis revealed a decline in XRPL’s network activity metrics across the board in Q2. Average daily transactions decreased by 11.9% QoQ, from 1.32 million to 1.16 million, reaching a level last seen in Q3 2022.
However, the Messari data also unveiled a notable development within the XRP ecosystemāthe expansion of XRPL sidechains. Two significant protocols, Coreum, and Root Network, were recently introduced to provide XRPL developers and users with desired programmability. Coreum focuses on ecosystem security, while Root Network aims to drive metaverse innovations.
In terms of XRPL’s overall growth, there was a significant increase in the total new address count, reaching 138,790āan impressive growth of 31.8% compared to the same period in 2022. Additionally, quarterly revenue surged by a remarkable 220.3% to reach $188,376.
The legal uncertainties surrounding Ripple’s XRP and the ongoing SEC case continue to have a notable impact on its market performance. However, the expansion of XRPL sidechains and the growth in new addresses demonstrate the underlying potential of the XRP ecosystem.
