- XRP’s liquidity ranking was extremely high, which could attract potential investors.
- Despite challenges, growing XRP holders and increased token velocity offered positive signals.
XRP’s recent price performance has been lackluster, but a glimmer of hope emerged as new data suggested potential recovery opportunities, especially in terms of liquidity rankings.
High ranking
Recent data from Kaiko showed XRP’s impressive liquidity rankings. This measure indicates the ease with which an asset can be bought or sold without affecting its price. It was exceptionally high for XRP.
This increased liquidity not only reflected positively on the token’s market depth, but also had the potential to attract retail investors looking for an investment that cannot be easily influenced by large traders.
Kaiko Research’s Q4 Token Liquidity Ranking has been released!
BTC, ETH, XRP and DOGE retained the top four spots, although SOL will look to break through next quarter 👀
How did your tokens do? pic.twitter.com/TQ3yoKzkQ7
— Kaiko (@KaikoData) January 11, 2024
The price of XRP fell
Despite its high liquidity ranking, XRP’s price stood at $0.598475 at the time of reporting, marking a decline of 1.09% in the past 24 hours.
The dip raised concerns as network growth for XRP also slowed, indicating declining interest among new addresses. This trend could pose a challenge to XRP’s recovery prospects.
In contrast, the total number of XRP holders continued to grow, accompanied by an increase in velocity around the token.
This increase in token velocity suggested increased activity and engagement among existing holders, potentially mitigating the impact of declining interest from new addresses.
Source: Santiment
While the number of XRP holders and token velocity remained encouraging, the state of the Ripple network showed a mixed picture.
Over the past month, the number of code commits and core developers has dropped significantly. This could impact the network’s ability to transmit changes to the network more quickly and could have negative long-term consequences for both the protocol and the token.
Source: token terminal
Growth in other areas
In the decentralized exchange (DEX) space, XRP saw tremendous growth. DEX volumes on the XRP network soared, accompanied by an increase in the number of new XRPL assets issued daily and an increase in the daily net amount of XRPL trustlines created.
XRPL, or the XRP Ledger, acts as the underlying technology that powers XRP transactions.
Is your portfolio green? Check out the XRP profit calculator
Source: Santiment
The positive growth in DEX volumes and XRPL-related activity could potentially offset the challenges caused by a dip in new code commits and core developers.
The surge in activity could also boost sentiment around XRP in the future.