TL:DR;

  • Although it’s just the start of the year, shortly after the Holidays, Ripple’s network usage has gone through the roof with a massive spike.
  • What does this mean for XRP’s prices, given the fact that the asset is already up by around 20% in 2025?

At the close of one year and the start of the next, cryptocurrency markets often experience a slowdown because traders prefer to engage in other activities instead of trading. This pattern was noticeable over the past few weeks too, with trading volumes for most digital currencies, including XRP’s, significantly decreasing on New Year’s Eve.

On the following day, the scenery took an alternate course. Ali Martinez marked a significant achievement for XRP, indicating that the transaction volume peaked at more than $7 billion on January 1st. This was the greatest level in at least four weeks, as the days preceding and succeeding that date showed considerably less activity.

$XRP recently experienced a spike in transaction volume, surpassing $7 billion!

— Ali (@ali_charts) January 4, 2025

If XRP’s price trend continues in an upward direction, it could be seen as positive or bullish. However, a sudden rise followed by a fall might only lead to temporary and short-lived price surges, just like what happened at the beginning of this year when the price rose from approximately $2 to $2.5 initially but has since dropped on a daily basis to about $2.4.

According to ChatGPT, it’s plausible that XRP could experience advantages due to sustained growth in transaction volumes, yet this would be contingent on specific factors. These factors include a growing interest and usefulness in the digital token itself, the general mood of the market, and how closely XRP follows broader market movements.

On the other hand, the AI chatbot cautioned that a large number of transactions could potentially cause an increase in price, though if this surge is solely due to speculation, it may result in a significant drop – a situation often referred to as ‘speculative risk’ or ‘pump-and-dump’ scenarios.

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2025-01-05 10:38