XRP Experiences Significant On-Chain Volume Surge Amid Increased Development Activity, According to Santiment
According to blockchain analytics company Santiment, XRP is experiencing a significant surge in on-chain volume due to increased development activity related to this digital asset.
As reported by the market intelligence platform, XRP, the digital token linked to Ripple Labs' payment platform, has initiated September with the highest recorded on-chain volume since February 1st, accompanied by a significant increase in development activity.
"XRP is currently experiencing substantial utility surges at the beginning of the month. In addition to achieving remarkable milestones in on-chain transaction volume (4.8 billion XRP) and circulation (2.03 billion XRP), the development activity for this crypto's 5th-largest market cap asset has also witnessed significant growth."
XRP, which had its automated, open-market sales legally classified as non-securities in July following a protracted legal dispute with the U.S. Securities and Exchange Commission (SEC), is currently trading at $0.496, reflecting a 1.09% increase in the past 24 hours.
Examining the cryptocurrency market leader, Santiment suggests that Bitcoin's recent decline, leading it back to price levels last seen in June, is attributed to the lingering fear, uncertainty, and doubt (FUD) surrounding the potential rejection of spot market Bitcoin exchange-traded fund (ETF) applications.
The analytics company also observes that this FUD continues despite the SEC's loss in a lawsuit against Grayscale related to the rejection of the cryptocurrency firm's Bitcoin ETF proposal.
"As of September's outset, BTC has experienced a decline to $25,400, marking its lowest price point since June 16th. Traders are increasingly apprehensive about the SEC's willingness to approve a spot Bitcoin ETF, even following Grayscale's legal victory. Expect FUD sentiment to persist at least throughout the weekend."
Santiment is closely monitoring the supply of stablecoins amassed by cryptocurrency whales, as this metric has the potential to offer insights into Bitcoin's future trajectory, potentially reaching either $30,000 or $25,000.
"Whales currently exhibit a certain level of uncertainty when it comes to accumulating stablecoins. A reliable strategy for anticipating the direction of the crypto market involves examining the holdings of large wallets and evaluating their stablecoin-to-crypto ratio. An increase in their purchasing capacity could indicate an upcoming market rebound."
At the time of writing, Bitcoin is trading at $25,797, reflecting a 1.2% increase in the past 24 hours.
Sep 04, 2023