XRP Ledger Activity Suggests Possible Shift From Retail to Institutional Use Amid Price Surge

Key Points

1. Daily active accounts on the XRP Ledger dropped by approximately 50% from January to June 2024, indicating a decline in retail activity.

2. Nearly 99.7% of on-ledger volumes are payments-related, with decentralized exchange trades and swaps accounting for less than 1%, highlighting a shift toward institutional settlement use.

3. Ripple CEO Brad Garlinghouse warned about a surge in YouTube scams targeting retail investors, further impacting retail participation.

4. The XRP Ledger's transformation suggests it is evolving into a wholesale settlement rail favored by institutions, contrasting with its previous retail-driven dynamics.

5. Despite XRP's price surge, the underlying network dynamics reflect a significant shift in user demographics and use cases, with institutional adoption growing as retail activity declines.