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- XRPScan introduces a new feature allowing users to view the onchain base transaction fee on the XRP Ledger.
- As XRP enters 2024, it showcases resilience in the market with the liquidation of short positions exceeding long positions.
The XRP Ledger (XRPL) is gearing up enhance its transparency with a new feature introduced by the leading explorer service, XRPScan.
In response to a comment from Dr. J. Scott Branson, an Advisor to the XRPLF, XRPScan announced that users of the explorer can now access onchain information about the base transaction fee. Dr. Branson emphasized the very low base transaction fee on the XRP Ledger, considering the overhead needed for transaction processing and storing XRP transactions on the chain.
Dr. Branson argued that the high transaction volume on the XRP Ledger is evidence that many users are capitalizing on the network’s cost-effective transactions compared to its counterparts. The XRPL is designed to facilitate large-scale transactions, particularly in payments and cross-border settlements.
Despite the advantages of the low fee, there is a concern about the imbalance it creates for validators, who perform more work while earning less. Dr. Branson is advocating for an increase in the base fee from 10 to 200 drops, a proposal he is advancing through the Cabbit Tech validator.
Prominent figures in the XRP ecosystem, including WietseWind, the founder of XRPL Labs and creator of Xumm Wallet, support Branson’s proposal. The proposal is likely to undergo a voting process during the next scheduled maintenance.
In the course of 2023, the XRPL witnessed several noteworthy milestones, including the introduction of the Xahau sidechain on the mainnet and multiple upgrades aimed at enhancing its Decentralized Exchanges (DEXs) and Non-Fungible Tokens (NFTs).
XRP Price Gains Traction
As 2024 began, XRP showcased notable resilience, witnessing the liquidation of short positions exceeding half a million dollars, a remarkable 13.57 times more than long positions. Despite persistent bearish sentiments, XRP demonstrated modest growth of 2.14%, reaching a current trading value of $0.634 per token and maintaining a range established since early November. Analysts speculate that the liquidation of short positions could be a catalyst for XRP’s price appreciation, potentially shifting market dynamics in favor of bullish trends.
Analyzing on-chain metrics becomes crucial in assessing the potential future price volatility of XRP. According to xrpscan data, the number of executed XRP transactions reached an unprecedented peak, surpassing almost 7 million on December 31 and maintaining high levels at 6.9 million the following day.
Furthermore, the average number of transactions per ledger has surged to unprecedented levels, consistently exceeding the 300 mark over the past three days. This surge in transaction volume signifies heightened network usage and increased interest in XRP, factors that could be viewed positively by investors, potentially acting as a catalyst for a price rally.
Additionally, the rapid growth in the number of XRP wallets is noteworthy, reaching almost 5 million. In contrast, this figure stood at approximately 4 million at the beginning of the previous year. The substantial increase in the number of wallets indicates an expanding user base and a surge in XRP adoption, potentially sparking enthusiasm and bolstering confidence among investors, thereby positively influencing market sentiment.
