Explosive Growth: Unveiling XRP’s Daily Transfer Volume in US Dollars

Ever wondered how much money zips through the XRP network every single day? In the fast-paced world of cryptocurrency, transaction volume is a key indicator of a crypto’s real-world use and adoption. XRP, championed for its speed and low cost in cross-border payments, has seen some intriguing shifts in its daily transfer volume, especially after recent market events. Let’s dive into the numbers and uncover the story behind XRP’s daily transfer volume in US dollars.

Decoding XRP’s Daily Transfer Volume: What’s the Real Number?

Recent data from Glassnode reveals that under normal circumstances, the XRP Ledger settles between $300 million and $1 billion in US dollars daily. However, things took an interesting turn in November 2024, coinciding with Donald Trump’s reelection. Since then, the average XRP daily transfer volume has surged to a whopping $2.28 billion! This significant jump suggests a dramatic increase in network activity, likely fueled by the concurrent price rally of XRP.

But before we jump to conclusions about widespread adoption, it’s crucial to understand what drives these volume spikes. Are they genuine indicators of increased utility, or are other factors at play?

Speculation vs. Utility: Unpacking the Drivers of XRP Volume

While a surge in XRP daily transfer volume might initially look like organic growth, it’s essential to consider other potential influences. These spikes could be attributed to:

• Speculative Trading: Price rallies often trigger increased trading activity as investors try to capitalize on market movements.
• Ripple-Related Transfers: Transactions linked to Ripple, the company behind XRP, can significantly impact volume.
• Whale Activity: Large transactions by major XRP holders (whales) can create noticeable volume surges.
• Exchange Reshuffling: Movement of XRP between cryptocurrency exchanges can also inflate transfer volume figures.

One major player contributing to these large transfers is indeed Ripple, and also key figures like co-founder Chris Larsen. Let’s examine their activities more closely.

The Ripple Effect: How Ripple and Chris Larsen Influence XRP Transfers

Large token sales by Ripple and its co-founder, Chris Larsen, are significant factors behind the spikes in XRP daily transfer volume. Here’s a breakdown:

Chris Larsen’s XRP Sales (2024-2025)

• September 2024: Transferred 50 million XRP (approximately $29 million) from a dormant wallet.
• Early 2025: Sold over $116 million worth of XRP, reducing his reserves in one wallet from 500 million to 410 million XRP.
• Historical Sales: The SEC estimated Larsen sold around $453.69 million worth of XRP between 2017 and 2020.

The 2024-2025 sales are particularly noteworthy due to their scale and timing during XRP’s price surge past $3.

Ripple’s XRP Escrow Sales (2017-2025)

Ripple has been strategically selling XRP from escrow since 2017. Here’s a timeline of their sales activity:

• Q4 2017: Sold $91.6 million during a massive 30,000% XRP price rally.
• Q3 2018: Sold $163 million amidst volatile market conditions.
• Q2 2019: One of their largest sales, reaching $251 million.
• Q1 2020: Sales plummeted to $1.75 million, likely due to SEC regulatory pressure.
• 2021: Approximately $1.5 billion in sales reported.

Ripple’s strategy appears to involve increasing sales during bullish market phases and reducing them during downtrends. They initially locked 55 billion XRP into escrow contracts in 2017, releasing 1 billion XRP monthly. Unsold tokens are re-escrowed, creating a dynamic supply mechanism.

The Big Picture: XRP vs. Bitcoin and Ethereum Transfer Volumes

When we compare XRP daily transfer volume to crypto giants Bitcoin and Ethereum, a clear picture of market dominance emerges. Bitcoin consistently outperforms both. The average Bitcoin daily transfer volume is around $23.26 billion across the entire dataset. In recent times, this has surged even further, averaging $64.03 billion over the past 30 days. This spike is likely due to institutional interest, ETF activity, and speculative trading.

Ethereum also surpasses XRP in overall volume. Its average Ethereum daily transfer volume is approximately $2.53 billion, with a recent 30-day average of around $5.67 billion.

Real-World Usage: What Does Transfer Volume Really Tell Us?

Total transfer volume is a crucial on-chain metric that reflects the actual value being settled on a blockchain daily. Sustained high volumes often indicate strong user activity and network utility. Bitcoin and Ethereum show consistent activity driven by custodians, ETFs, and DeFi applications. However, XRP’s volume seems more tied to trading cycles, suggesting a different usage pattern.

Despite Ripple’s efforts to promote XRP for cross-border settlements through On-Demand Liquidity (ODL), on-chain volumes suggest that enterprise adoption is still limited. However, the XRP Ledger is evolving, with new features like stablecoin issuance, tokenization, and EVM compatibility being introduced. The recent 3,100% increase in Automated Market Maker (AMM) volume on the XRPL in Q4 2024 signals promising growth in usage, but it’s still early days.

Looking Ahead: Can XRP Bridge the Volume Gap?

While XRP’s daily transfer volume has shown impressive spikes, particularly after Trump’s reelection, it still lags behind Bitcoin and Ethereum in overall sustained volume. The key question is whether the ongoing developments on the XRP Ledger, such as AMMs and new tokenization capabilities, will translate into consistently higher on-chain activity and real-world utility, ultimately bridging the volume gap with its larger crypto counterparts. Only time will tell if these innovations can drive genuine, sustained growth in XRP daily transfer volume and solidify its position in the crypto ecosystem.

Disclaimer: This article is for informational purposes only and should not be considered investment advice. Cryptocurrency investments are inherently risky, and readers should conduct thorough research before making any decisions.