Key insights
- XRP falls 35% from July highs as trading and DeFi activity decline.
- XRP Ledger transaction volume halves, weighing down the network’s burn rate.
- REX-Osprey XRP ETF crosses $100 million AUM, signaling growing institutional interest.
XRP price continued its downward movement for the second consecutive day, touching a low of $2.40. This marks a 35% decline from its highest level in July. The downturn comes as the broader cryptocurrency market remains under pressure, with investors cautious ahead of upcoming US inflation data.
XRP’s ecosystem has seen a notable slowdown. Its total value locked within decentralized finance has dropped to $86 million, falling from a year-to-date high of $102 million. The XRP Ledger’s decentralized exchange activity also reflected weaker sentiment. Trading volumes have decreased to $6.1 million from a monthly high of $12 million.
Burn rate slumps as transaction count falls
The network’s declining activity has affected the token’s burn rate. XRP burned as transaction fees now averages below 1,000 tokens daily, compared to over 4,500 a few months ago. The cumulative burn has reached 14.2 million XRP, equivalent to approximately $32 million. This remains marginal against XRP’s total market capitalization of over $147 billion.
XRP Ledger’s stablecoin market cap has slipped to $184 million from a year-to-date high of $186 million. The total number of transactions on the ledger has also declined significantly to 1.123 million from 2.5 million recorded in July. These figures suggest a broader slowdown in usage and engagement across the network.
Technical setup hints at potential rebound
Despite recent losses, XRP’s price chart reveals an inverse head-and-shoulders pattern, which typically signals a potential bullish reversal. The token has moved into the Ichimoku Cloud range and appears to be forming the right shoulder of the pattern. A breakout above the $2.55 resistance level could lead to further gains, with $2.6415 as the next target.
Source: TradingView
In a positive development, the REX-Osprey XRP ETF (XXRP) has surpassed $100 million in assets under management. This suggests continued institutional interest and could support future demand for XRP through similar investment products.
