XRP, the native cryptocurrency of the Ripple network, has been experiencing a roller coaster ride in the past few months. After a major legal victory against the U.S. Securities and Exchange Commission (SEC) in July, which declared XRP as a nonsecurity, the coin rallied to over $0.8, gaining more than 70% in value.
However, this bullish momentum was short-lived, as XRP soon entered a downtrend that lasted until August, dropping below $0.7.
XRP Has Been Slowly Recovering
Despite the price volatility, one metric that has been showing consistent growth is the number of active addresses on the XRP network. According to data from TradingView, XRP’s active addresses have increased from around 50,000 in early July to nearly 200,000 in early August, reaching a level that was last seen in May.
This indicates that the user base and transactional activity on the XRP network are expanding, regardless of price fluctuations.
The positive outcome of the lawsuit against the SEC is one possible factor that may have restored confidence among many existing and potential XRP holders. The ruling that XRP is not a security may have signaled its legitimacy and potential for future growth, particularly in the cross-border payments sector.
This could have contributed to an increase in demand for XRP and a corresponding rise in its value. Moreover, the rally that followed the SEC decision might have attracted traders and investors who are keen on capitalizing on price swings.
Another possible factor is the growing adoption of XRP by various platforms and services. For instance, Gemini, one of the leading U.S.-based crypto exchanges, recently announced that it has listed XRP for trading and custody. This marks a significant milestone for XRP, as Gemini is one of the few regulated exchanges that offer XRP to U.S. customers.
Additionally, Crypto.com, Bitstamp, and other platforms have also resumed or expanded their support for XRP, increasing its liquidity and accessibility.
The increase in active addresses is a positive sign for XRP, as it reflects its underlying strength and resilience. While the price of XRP might still be influenced by market sentiments and external factors, such as the SEC’s planned appeal to the July ruling, the network activity suggests that XRP has a solid user base and a loyal community that will continue to support its development and innovation.
