XRP transaction fees drop 89%: Is price headed below $1.75?
XRP price risked a 15% drop to as low as $1.73, fuelled by collapsing transaction fees, reduced speculator appetite and a weakening technical structure.
XRP
$2.02
drop toward $2 was preceded by a significant drop in transaction fees, which analysts said may fuel a deeper price correction.
Key takeaways:
XRP transaction fees have dropped to 650 XRP per day, levels last seen in December 2020.
XRP’s descending triangle targets $1.73.
XRP transaction fees drops to five-year lows
The total daily transaction fees on XRP Ledger (XRPL) have dropped significantly since the beginning of the year, according to onchain data provider Glassnode.
Related: XRP needs a Solana-style strategy to keep up: Ripple executive
The total fees paid daily on XRP have dropped to about 650 XRP per day from 5,900 XRP per day on Feb. 9, Glassnode said in a Thursday post on X, adding:
“This marks an 89% decline to levels last seen since December 2020.”
The drop in transaction fees coincides with a sharp drop in XRP’s futures open interest (OI), which has fallen to 0.74 billion XRP from 1.75 billion XRP in early October, representing a 59% flush-out.
Paired with the funding rates dropping to 0.001% from 0.01% (7D-SMA), this suggests reduced confidence among derivatives traders in XRP’s ability to recover.
XRP: Futures open interest. Source: Glassnode
As Cointelegraph reported, social sentiment toward XRP has tanked into the “fear zone,” the most FUD since early October, but some analysts say such a drop could be a precursor for a massive rally in XRP price, as seen in the past.
