On-chain analytics firm Santiment points out that utility spikes in XRP networks tend to precede bullish price actions on asset prices.
XRP Network Activity Lights Up Before Latest Price Surge
It’s new post In X, Santiment discusses network activity-related metrics for XRP. The metrics in question are transaction volume and circulation.
These first, Transaction volumemeasures the total amount of cryptocurrencies involved in blockchain transfers every day. This metric provides a sense of overall activity occurring on the network, but may give a distorted picture of investor behavior.
This is due to the fact that not all transfers occur on the chain. Many of them are constantly moving due to repeated transactions and internal shuffling, with the same portion of the supply.
The second indicator, circulation, helps in filtering these movements, such as these. This metric tracks the unique number of tokens every day being shifted in the XRP network.
“Unique” means that no matter how many times a particular coin participates in transfer activity on the blockchain, only one unit contributes to the indicator value.
Well, here’s a chart shared by Santiment, which shows trends in both of these XRP metrics over the past few months.
As shown in the graph above, the volume of XRP transactions saw a huge surge to $2.1 billion on August 1st. This 6-month metric surge has been surged as the asset’s price was drawing down towards nearly $2.70.
In addition to the rise in volume, the circulation also registers spikes to 1.12 billion tokens, indicating that the mobile activity that occurs in the network is organic.
Since this burst of activity on the blockchain, cryptocurrency has witnessed some recovery. From the charts, we can see that these indicators have also skyrocketed in the past, which led to a surge in coin prices. “Utility spikes on the network consistently foresee price increases,” the analytics company said.
In some other news, XRP broke out from a Triangle channel As analyst Ali Martinez explained in X on Thursday post.
Generally, breakouts above the top of the triangle are considered bullish signals Technical Analysis (TA). And certainly, the pattern may have been foreseen, so the assets have since enjoyed a surge in value.
XRP Price
At the time of writing, XRP was around $3.29, an increase of over 7% over the last 24 hours.