XRP Ledger On-Chain Activity Falls 99% As Institutional Flows Pause

TLDR

Table of Contents

XRPL payment volume dropped from 1.09 billion to about 137 million within three days
XRP Ledger transactions declined from over 2 million to around 1.8 million
XRP price remained above $2 despite a sharp fall in on-chain activity
XRPL developers confirmed upcoming amendments including TokenEscrow and Price Oracle

The XRP Ledger has recorded a sharp drop in on-chain activity, raising questions across the crypto market. Data shows that transaction volumes on Ripple’s blockchain fell by about 99% within two days. Despite the scale of the decline, XRP’s price has remained relatively stable. This contrast has drawn attention to what actually caused the sudden drop and whether it signals deeper issues within the network.

Sharp Decline in XRP Ledger Activity

On-chain metrics from XRPL data trackers show that activity on the XRP Ledger fell steeply over a short period. Payment volumes between accounts dropped from more than 1.09 billion on January 8 to about 166.99 million by January 10. By January 11, volumes declined further to roughly 137.40 million.

Transaction counts followed a similar pattern during the same period. XRPL transactions fell from more than 2 million on Thursday to around 1.8 million by Saturday. The decline shows how changes in large-volume transfers can strongly affect network statistics in a short time.

Weekend Timing and Market Behavior

The timing of the activity drop aligns with typical weekend behavior in crypto markets. Institutional traders and payment processors often reduce activity during weekends. As a result, ledgers that rely on high-volume transfers tend to show sharp declines during these periods.

XRPL payment activity is closely tied to large accounts and cross-border transfers. When these participants pause operations, network data can shift quickly. The recent drop appears linked to reduced participation rather than a technical failure or network outage.

XRP Price Shows Limited Reaction

Despite the drop in on-chain activity, XRP’s market price has shown limited response. The token has continued trading above the $2 level during the period. CoinMarketCap data shows XRP declined by more than 4% over the past week.

There is no direct data linking the price movement to the activity decline. Price stability suggests that traders did not view the drop as a sign of structural issues within the Ripple blockchain. Market behavior remained orderly despite the sharp change in ledger metrics.

Whale Activity Before the Drop

Before the decline in activity, the XRP Ledger recorded an increase in large-value transfers. On-chain data showed a rise in transactions worth $100,000 or more. These transfers are often associated with institutional or high-net-worth participants.

The presence of whale activity shortly before the drop suggests ongoing engagement from major holders. It also shows that large participants were active even as broader transaction counts later declined. This pattern supports the view that the activity drop was temporary.

XRPL Developer Update on Network Changes

Alongside the activity discussion, an XRPL developer shared updates on upcoming network changes. Vet, an XRPL dUNL validator and developer, stated that several fixes and amendments are approaching activation. These updates are moving through the network’s amendment process.

According to Vet, the changes include TokenEscrow, AMMClawback, Multi-Purpose Tokens, and a Price Oracle feature. He said the development team is focused on stability and performance. He also noted that development work continues regardless of short-term market conditions.