Information about the Payments Volume on the XRP Ledger (XRPL) decreasing to near 0 seems concerning, but analysts suggest that the main cause should be considered in the context of the larger market.
The main reasons for this decline, particularly at certain times, include:
1. Illusion "Weekend Effect" and Organizational Factors:
This is considered the main and most important reason for the sudden drop:
Institutional Activity Stalled: Recent payment volume on the XRP Ledger has been significantly impacted by institutional activity, especially in the U.S. through regulated platforms like Coinbase and transactions related to Exchange-Traded Funds (ETFs).
Reduced Activity on Weekends: Institutions, large trading desks, and participants focused on regulatory compliance often stop or significantly reduce their trading activities on weekends (according to traditional market hours).
Liquidity Paused: When these major players withdraw, on-chain payment volume can quickly drop to almost zero, especially if retail transactions are not enough to offset. This is described as suspended liquidity, not a dead network.
2. Decline in Speculative and Institutional Interest:
Low trading volume also reflects a drop in general market interest in XRP, particularly from institutional investors:
Decline in Speculative Trading: Speculative trading volume has significantly decreased, indicating much greater speculative interest compared to the actual utility usage of XRP.
Remaining Legal Uncertainty: Although Ripple has achieved significant legal victories, the remaining regulatory uncertainty continues to weigh on the asset and dampen institutional interest in using or trading XRP.
3. Bitcoin Dominance and Liquidity Flow:
Bitcoin Draws Liquidity: Bitcoin's (BTC dominance) high level has drawn liquidity away from altcoins, including XRP, exacerbating the situation.
Impact on Price: This decline in payment volume does not necessarily mean that XRP's price will collapse, but it indicates that utility-driven demand and network liquidity are diminishing.
⚠️ Important Note
Similar volume reductions have occurred in the past when demand from institutions temporarily disappeared, only to surge again when traditional markets opened. The divergence between strong network activity (such as the number of active addresses, utility growth) and declining payment volume/price is a key point that investors need to monitor.
The content is informational and analytical, not investment strategy advice.
