Is Ripple’s XRP Ledger losing its on-chain momentum? Recent data reveals a 30-40% drop in XRP Ledger activity, raising questions about transparency and institutional adoption. Here’s what’s happening behind the scenes.
XRP News Today: Understanding the On-Chain Activity Decline
The XRP Ledger (XRPL) has seen a significant reduction in key metrics:
- New wallet creation down 30-40%
- Transaction volume decreased by similar margins
- DEX volume declined by 16% (more resilient than other sectors)
Ripple XRP Ledger: The Institutional Off-Chain Shift
Ripple’s CTO David Schwartz explains why institutions prefer off-chain:
| Reason | Impact |
|---|---|
| Regulatory concerns | Reduced on-chain visibility |
| Privacy requirements | Limited transparency |
| Compliance needs | Slower adoption |
XRP Transparency Challenges in 2025
Despite 300+ institutional partnerships, real usage data remains scarce because:
- Most activity occurs off-chain
- Ripple doesn’t use XRPL DEXs
- TVL remains low at $81.8 million
What’s Next for XRP Ledger On-Chain Activity?
Ripple is making strategic changes:
- Discontinuing quarterly XRP Markets Reports
- Shifting to direct communication via RippleXDev channels
- Exploring “permissioned domains” for institutional adoption
The XRP Ledger faces a critical juncture as it balances institutional needs with blockchain transparency. While current metrics show decline, Ripple’s long-term strategy focuses on building trust through alternative reporting and gradual on-chain adoption.
Frequently Asked Questions
Q: Why is XRP Ledger activity declining?
A: Institutions are moving transactions off-chain due to regulatory and privacy concerns, reducing visible on-chain metrics.
Q: How does this affect XRP investors?
A: The shift makes network activity harder to track, but doesn’t necessarily indicate reduced institutional usage.
Q: What is Ripple doing to address transparency concerns?
A: They’re evolving their reporting methods and developing new solutions like permissioned domains.
Q: Will this trend continue in 2025?
A: Likely until institutions become more comfortable with public blockchain transparency.
