- XRP on-chain activity spikes amid ETF buzz
- XRP adoption soars
All eyes have been on XRP, considering its high price volatility despite the major ETF launch that happened this week. With all attention on the asset, XRP has made a noticeable increase in its on-chain activity, sparking discussions across the market.
According to data showcased by XRPSCAN, the amount of XRP burned as fees has seen a decent increase of 33.9% as of Nov. 21, printing a bullish outlook amid the growing uncertainty.
XRP on-chain activity spikes amid ETF buzz
The data shows that XRP has witnessed a decent rise in the quantity of XRP tokens burned as fees in the past day, surging from the 604 tokens it recorded on Nov. 20 to a sharp 808.8 tokens the next day.
While XRP is still witnessing the longest correction phase it has seen so far this year with its price currently trading below $2, the mild resurgence in its on-chain activity is finally flashing hopes of recovery as it appears to be headed toward the four-figure range.
Usually, increases in the rate of burned XRP like this are often a clear indication of increased network-wide transaction activity, suggesting that more users are actively utilizing the blockchain.
As such, the sharp resurgence in the metric despite XRP’s price decline has been attributable to growing demand from institutional investors amid the major ETF launch that happened this week.
XRP adoption soars
The XRP ecosystem has been buzzing with hype and high optimism spurred by the launch of the Bitwise XRP ETF that happened on Thursday. Notably, the fund emerged as one of the strongest ETF launches so far this year, recording a first day inflow of over $107 million.
With more major XRP ETFs expected to launch in the coming week, combined with the surging network activity, confidence is finally returning to the XRP ecosystem as the metric flashes hopes of a possible recovery soon.
Thus, the unexpected increase in the XRP burn rate may be a sign for a potential price retracement, as the growing usage appears to be connected with the surging institutional demand.