XRP Ledger Activity Plunges 90% Amid Growing Concerns

XRP Ledger, the backbone infrastructure powering XRP transactions, has experienced a dramatic 90% drop in on-chain activity, leading to rising apprehension among crypto investors and developers. This sharp decline shines a spotlight on the network’s current usage, or lack thereof, and what it could mean for XRP’s overall ecosystem and future utility.

Recent data suggests a concerning disparity between XRP’s speculative value and its actual on-chain utility. Payment volumes and transfers on the XRP Ledger have diminished significantly. Despite XRP holding its value between $2.30 and $2.40, transaction traffic within the ledger has nearly evaporated, raising questions about whether the currency is maintaining its utility narrative.

Earlier this month, XRP showed technical optimism by breaking out of a descending wedge pattern. However, that bullish momentum has since stalled. Currently priced around $2.30, XRP is positioned precariously above its 100-day Exponential Moving Average (EMA), which acts as support. Should this support fail, the 200-day EMA, located near $2.20, becomes the next target. A drop below this range could potentially pull the token toward $2.05, putting the broader bullish structure built over recent months at risk.

The momentum behind XRP appears to be weakening. Currently, the Relative Strength Index (RSI) stands in the mid-50s, signaling neutral positioning rather than an oversold opportunity. This aligns with the significant shrinkage in trading volume, further intensifying fears of a downward trajectory unless demand rebounds soon.

So what is behind this steep drop in XRP Ledger’s activity? Analysts attribute it to several critical developments. First, speculative demand has waned as traders reallocate funds elsewhere in the market. Second, institutional use cases for XRP appear to be contracting amid lingering regulatory uncertainties. Finally, Bitcoin’s current dominance in the market is pulling both attention and liquidity away from alternative assets like XRP.

The effects of these factors are visible in payment activity charts on the XRP Ledger. These charts reflect subdued enterprise and retail interactions—both of which are integral to XRP’s identity as a scalable, real-time payments token. Market watchers are now closely monitoring the $2.20 and $2.30 support levels. A sustained bounce from these zones could trigger a retest of the $2.50 breakout region, but a failure to hold could usher in deeper losses.

If XRP is to reverse this trend, it needs to demonstrate renewed relevance in practical transactions and real-world integration. Speculation alone may not be enough to sustain enthusiasm in the long run. With more than 90% of its usage capacity reportedly diminished, XRP is at a critical juncture. The path forward hinges on whether utility can be reignited — otherwise, its market price could soon reflect the network’s diminished activity.

Related: Expert Advice: Sell XRP If You’re Confused

As the broader cryptocurrency landscape evolves, XRP’s ability to maintain significance will largely depend on its ability to attract real, sustained use cases. Whether through institutional partnerships, retail-friendly solutions, or innovation on the XRP Ledger, restoring transactional volume is critical for the asset’s health in 2025 and beyond.