XRP News Today: Ripple XRP Ledger Faces 30-40% On-Chain Activity Drop Amid Institutional Shift
Ripple’s XRP Ledger (XRPL) is facing a significant decline in on-chain activity, dropping 30-40% in early 2025. This XRP news highlights a growing trend of institutional players moving transactions off-chain, raising questions about blockchain transparency and adoption.
Why is XRP Ledger on-chain activity declining?
The XRP Ledger, launched in 2012 as an open-source blockchain for enterprise use, has seen notable drops in key metrics:
- New wallet creation down 30-40%
- Transaction volume decreased significantly
- Total Value Locked (TVL) in XRPL DeFi at $81.8 million (mid-2024)
Institutional adoption driving off-chain shift
Ripple’s CTO David Schwartz explains that over 300 institutional partners prefer off-chain transactions due to:
| Reason | Impact |
|---|---|
| Regulatory concerns | Greater control over compliance |
| Privacy requirements | Reduced exposure to public ledger |
| Risk mitigation | Prevention of potential misuse |
What does this mean for blockchain transparency?
The shift to off-chain transactions creates challenges for assessing real XRP Ledger usage. While Ripple collaborates with major entities like the Dubai government, concrete on-chain metrics remain scarce. The company is exploring solutions like “permissioned domains” to bridge this gap.
Ripple’s evolving transparency strategy
In response to these trends, Ripple announced changes to its reporting approach:
- Discontinuing current XRP Markets Report format after Q2 2025
- Sharing insights through Ripple and RippleXDev channels
- Focusing on building trust through new data streams
The future of XRP institutional adoption
While current on-chain activity shows decline, Ripple anticipates growing institutional recognition of blockchain benefits. The company believes transparency and efficiency will eventually drive more on-chain adoption as regulatory frameworks evolve.
FAQs
Q: How much has XRP Ledger activity declined?
A: Metrics show 30-40% drops in new wallet creation and transaction volume.
Q: Why are institutions avoiding on-chain transactions?
A: Primarily due to regulatory concerns, privacy needs, and risk mitigation.
Q: What is Ripple doing to address transparency concerns?
A: Exploring solutions like permissioned domains and changing reporting methods.
Q: Does this affect XRP’s price or utility?
A: The long-term impact remains unclear as institutional adoption continues evolving.
