WHAT'S GOING ON WITH XRP?

The XRP Ledger has experienced a surge in its velocity index, reaching an annual high of 0.0324 points, suggesting a substantial increase in the economic activity of the network. This index measures the frequency at which the cryptocurrency $XRP is actively circulating among market participants, rather than remaining in long-term storage.

According to CryptoOnchain's analysis for CryptoQuant, this increase in circulation velocity indicates high liquidity and significant participation from both individual traders and "whales" (entities holding more than 1 million XRP). Historically, an increase in transactional activity of this magnitude has been a precursor to potential bullish movements in the price of XRP, as greater circulation often implies higher demand or strong redistribution of supply.

In addition to this velocity peak, the report highlights an increase in withdrawals of $XRP from large centralized exchanges like Binance. The combination of high internal circulation on the Ledger and the movement of tokens off trading platforms is interpreted as a signal that $XRP could be nearing the end of its sideways phase, potentially preparing for a new period of price increase driven by active network usage and reduced supply available in the market.