XRP Ledger Sees Explosion in Address Activity Amid High-Risk Crypto Loans Hitting 2-Year High
As the need for energy-efficient, low-cost, and fast payments increases, XRP Ledger is witnessing growing demand.
Calling out this development leading on-chain metrics provider Santiment acknowledged, XRP Ledger has spiked in active wallets significantly, reaching 35,799 unique wallets making at least one transfer in a single day, the highest in over 3 months. Additionally, 3,858 new wallets were created in a single day, the highest amount in over 7 months.
Top analytics firm CryptoQuant echoed these sentiments and stated, XRPL saw significant growth in AMM liquidity, with strong increases in AMMDeposit and AMMCreate. Despite a drop in AMMBid, the rise in liquidity deposits indicates confidence in existing pools.
As an open-source, decentralized blockchain network, XRP Ledger is gaining steam thanks to its extremely fast transaction speed, which far outweighs that of leading networks such as Ethereum (ETH) and Bitcoin (BTC).
Therefore, XRP Ledger is a force to reckon with in cross-border remittances and transactions.
Earlier this year, Ripple pumped a whopping $10 million into tokenized U.S. treasury bills on XRP Ledger. This move was deemed strategic since it could boost the ecosystems native coin XRP.
What Does a Rise in High-Risk Loans in the Crypto Market Mean?
As address activity in the XRP Ledger network rises, high-risk crypto loans have also been rising.
According to IntoTheBlock data, high-risk loans have spiked after hitting the $5 million mark, a scenario last seen in June 2022.
Therefore, this shows intensified borrowing in the crypto sector, which could signal the high demand for leverage since traders are in high gear to amplify their expected returns.
This indicates that investors are anticipating an increase in crypto prices because the loans will be repaid after this happens. Additionally, the high-risk crypto loans illustrate a surge in speculative market sentiment.
Text source: ZyCrypto
