XRP Ledger activity surged in Q1 2026 even as XRP’s market metrics slid, according to Messari’s State of XRP Q1 2026 report — highlighting a growing divergence between on-chain usage and token price. Key takeaways - On-chain activity: Average daily transactions on the XRP Ledger jumped 35.3% quarter-over-quarter, rising from 1.83 million to 2.48 million. - Price and market cap: XRP’s market capitalization fell 26.3% to $82.21 billion and its price dropped 27.1% to $1.34. Circulating supply climbed 1.1% to 61.34 billion XRP. - Trading volumes: Average daily spot volume fell 32%, and perpetual futures volume dropped 28.6%. - ETF holdings: U.S. spot XRP ETFs held 775.4 million XRP (1.26% of circulating supply), up 1.9% from the prior quarter. What’s driving the split Messari suggests the ledger’s expanding feature set — beyond simple token transfers — helped drive on-chain growth despite broader market weakness. XRPL continues to support payments, token issuance, decentralized liquidity, stablecoins, and real-world assets (RWAs), keeping network usage robust even as speculative trading cooled. Stablecoins and tokenized assets gaining traction - RLUSD, Ripple’s stablecoin on XRPL, saw its market cap grow 44.9% to $340.3 million in Q1, becoming the largest stablecoin on the ledger. Messari also reported RLUSD had more holders on XRPL than on Ethereum by quarter-end, although Ethereum still handled higher transfer volume. - Tokenized real-world assets on XRPL expanded rapidly: RWA market cap rose 124.1% quarter-over-quarter to $2.25 billion. That growth vaulted XRPL into the top ranks for tokenized asset market caps — seventh at the end of Q1 and fourth by the report’s publication. Institutional tooling and product progress Messari notes several institutional-focused features went live during the quarter, including Permissioned Domains, Permissioned DEX, and Token Escrow. Native lending and asset vault proposals remained in the voting stage; if approved, they could enable lending, borrowing and more structured asset use on XRPL. Market context and tensions Despite increasing on-chain activity and product adoption, demand dynamics remain mixed. Messari and other coverage point out that while RLUSD and stablecoins can boost ledger usage, stablecoin settlement does not necessarily translate into direct demand for XRP as a bridge asset. Meanwhile, XRP funds saw inflows — $85.8 million over three weeks — and Morgan Stanley disclosed small positions in two XRP-focused ETFs, indicating continued institutional interest in regulated XRP products. Methodology note Messari’s report was commissioned by Ripple; Messari retained editorial control, the firm says. Bottom line Q1 revealed a clear split: XRP’s market price and trading volumes declined, but XRPL activity, stablecoin adoption and tokenized-asset growth accelerated. The mismatch underscores a broader theme in crypto this year — on-chain utility can advance independent of near-term price action, especially as networks add product features that attract real-world and institutional use. Read more AI-generated news on: undefined/news