Significant changes have been observed in the utilization of the XRP ledger, indicating a shift in network activity over recent months. Recent analysis suggests a surge in trading volume, indicating a departure from Bitcoin’s conventional payment role.
Furthermore, the submission of a new Spot ETF application has the potential to further enhance the functionality of Ripple’s offerings.
Surge in User Engagement
Data from CryptoQuant reveals a shift in user behavior within the Ripple network.
Previously, the platform was mainly used for payment transactions, constituting around 88% of total activity earlier this year. However, this dominance has now decreased, with payment transactions accounting for approximately 44% of the total.
In contrast, the adoption of the new OfferCreate feature has gained momentum and is now equally significant.
The increase in OfferCreate transactions suggests a growing interest in trading activities.
This trend indicates that users are increasingly using Ripple for asset issuance and leveraging DEX functionalities, expanding the platform’s utility beyond payments. This diversification of applications bodes well for Ripple, enhancing its attractiveness and increasing user participation.
Rising Interest in XRP ETFs
Several institutions have expressed interest in launching Spot XRP ETFs, which could significantly benefit XRP and Ripple.
For instance, 21Shares recently submitted its Spot ETF application for XRP on 1 November. This application, including a Form S-1 for Core XRP Trust shares, is expected to be listed and traded on the Cboe BZX Exchange.
Following previous applications by Bitwise and Canary Capital, the approval of these applications by the U.S. Securities and Exchange Commission (SEC) could expose more traders directly to XRP.
This development would align XRP with Bitcoin and Ethereum, both of which already have Spot ETFs from various institutions. While the Bitcoin ETF has enjoyed significant success, the Ethereum ETF is still playing catch-up.
The timing for XRP appears favorable, particularly as recent filings suggest that Ripple’s legal battle with the SEC may be entering a more positive phase following the ruling that XRP is not a security.
Potential Outlook for XRP
If XRP secures approval for a Spot ETF, it could experience a substantial price surge. Technical indicators indicate that XRP has been struggling to sustain levels above the 50-day and 200-day moving averages, both around $0.55.
Additionally, the altcoin’s support level hovers around the $0.50 mark.
The approval of an ETF could trigger a breakout above these moving averages, potentially leading XRP to test resistance levels near $0.60 or higher.
A successful breakthrough could propel XRP to target the psychological barrier at $0.75 and even reach the $0.85 range if buying pressure intensifies.
As of the current writing, the MACD and RSI indicators show some restraint. However, a shift in sentiment could occur if the ETF approval is granted, potentially sparking a bullish rally in XRP’s price charts.