A recent surge in XRP Ledger (XRPL) payments has caught the attention of the broader crypto market, raising questions about what could be driving this massive rally. The final milestone comes next XRP saw a renewed accumulation of whales even as prices continued to fall amid rising volatility.
XRP Ledger Records Mysterious Increase in Payments
Data from XRP’s leading blockchain explorer, XRPScan, shows that on May 19 the number of XRP payments from one account to another was only 766,051. However, the number of payments rose sharply in the following days, surpassing 1.22 million on May 22, representing an increase of more than 300,000 users.
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Before this surge, the number of payments from one account to another had consistently fluctuated between 700,000 and 800,000, making the latest rally a bit unnatural. Interestingly enough, XRP Ledger Payment Volume during the same period there was only modest change. On May 19, volume was approximately 434.9 million, rising to 486.2 million on May 22, reflecting a small increase of just over 51 million, hardly reflecting the dramatic spike in user accounts.
Considering the recent drop in the XRP price and the prolonged lateral movementthe unexpected increase in the number of users in the ledger is suspicious. It begs the question of where these users came from and, more importantly, why they arrived at a particular time Market enthusiasm appears to be subdued. When the number of users of a cryptocurrency increases as its price falls, it generally indicates one of two things: either true accumulation by XRP holders, or coordinated wallet activity.
Notably, Nepetia, an XRP supporter who also noticed the unusual increase in payments, has shared comments about it. In a May 24 X-post, she said declared that even as the market continues to retreat, the number of payments and volume of XRP will continue to rise, pointing to its underlying strength.
Nepetia said whales have done that too accumulated more than 71 million XRP in just seven days while Spot XRP ETFs continue to do that post a positive inflow. Against this backdrop, she noted that these recent developments are important market signals indicating that the XRP price may be preparing for a sharp move.
XRP whales step back from accumulation
XRP Whales had been actively purchasing tokens in recent months. However, this is evident from the latest report from crypto analyst Ali Martinez reveals that over the past nine days, whale activity on the XRP Ledger has dropped from 157 large transactions worth over $1 million to just 67 on May 23. He noted that this difference represents a decline of more than 57.3% in whale activity.
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Interpreting the moves, Martinez explained that when large-scale transaction volume decreases by this magnitude, it indicates that the market could enter. an important compression phase. He noted that whales appear to be pulling back from accumulation, allowing the current XRP price, between $1.3 and $1.4, to settle. He stated that this shift naturally reduces immediate volatility and allows order books to mature.
Featured image from Getty Images, chart from Tradingview.com