XRP Payments Drop 80% As DEX Volume Hits $400M: What’s Next?

• XRP’s on-chain payment volume plunged from 1.49 billion to 200 million.
• Meanwhile, XRP Ledger’s DEX recorded $400M in January trading volume.
• Ripple’s CEO calls 2024 a “monumental year” despite shifting trends.

Ripple’s (XRP) on-chain payment volume fell from 1.49 billion transactions on January 1 to just 200M at month’s end. This marked a drop of 87%.

However, even as payment volumes decline, the XRP price remains stable, hovering around $3.10. At the same time, its decentralized exchange (DEX) trading surged past $400 Million in January.

XRP’s Payment Volume Faces a Major Decline

The collapse in the XRP payments volume signaled a significant slowdown in on-chain transactions. This could further indicate reduced institutional activity on the network.

On-chain data showed that XRP processed nearly 1.5 billion payments daily in January. However, by the end of the month, that number had fallen to around 200 million.

The drastic drop in transaction count suggested that remittance and cross-border payment use cases may be losing momentum.

This drop is concerning because XRP has long been marketed as a high-efficiency payment network. Financial institutions and remittance services have historically used the XRP Ledger to conduct rapid and cost-effective transactions.

The latest slump raises concerns about whether banks and fintech companies are moving away from using XRP for payments. The XRP Ledger’s active account count has declined, indicating fewer people transacting.

While this dip does not necessarily indicate bearish momentum, it does suggest a shift in XRP’s utility within the ecosystem.

XRP Ledger’s DEX Trading Surges to $400 Million

The volume of XRP payments has decreased, but its DEX has grown rapidly, with trade volume surpassing $400M in January. Per Ripple CEO Brad Garlinghouse, the XRP’s DEX has seen a rapid expansion recently.

He emphasized that this played a significant role in making 2024 “one of the most monumental years for Ripple.” Traders and institutions increasingly use the DEX. It is embedded directly within the XRP Ledger rather than as a standalone application.

Garlinghouse noted that daily DEX trading volumes averaged over $17 Million this month. It surpassed $1 Billion in cumulative volume since the Automated Market Maker (AMM) launch in 2024.

This surge highlights the growing adoption of XRP’s DEX functionalities among crypto traders and liquidity providers. XRP Ledger’s rising trading activity coincides with growing anticipation for a spot XRP ETF and excitement over Ripple’s new stablecoin (RLUSD).

Analysts at JPMorgan predicted that an XRP ETF could attract over $8 billion in inflows. This could further strengthen the asset’s market position.

Can XRP Reclaim $4?

The XRP price was trading at $3.13, up 2.05% in the past 24 hours. The token has maintained a bullish structure despite a decline in payment volume. It remained above key moving averages, including the 50-day EMA, signaling positive investor sentiment.

Technical indicators showed that resistance levels at $3.20 and $3.50 could determine the next price move. If XRP breaks past these levels, a rally toward $4 could materialize.

Conversely, support at $2.86 will be crucial to watch, as a drop below this level could trigger further downside. Another potential catalyst is a spot XRP ETF, which some analysts believe could see $8 Billion in inflows if approved.

Furthermore, Ripple’s recent licensing as a money transmitter in New York may pave the way for institutional use. This might help XRP’s long-term development even more.

According to Velo Maxi, the XRP price was forming a bullish pennant. It was similar to the setup that led to its breakout past $3. He expected this consolidation to end within a week, pushing XRP above $4 by February 5.

Crypto Whistler predicted $4 by April, while Javon Marks expects XRP to hit $4.80 without a set date. Fabio Zuccara sees an ascending channel forming, signaling an imminent breakout.

A potential spot XRP ETF is expected to attract $8 Billion in inflows. Moving ahead, Ripple’s New York money transmitter license could drive further institutional adoption, supporting long-term growth.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.