The SEC vs. Ripple lawsuit is holding XRP back, but fundamentals remain strong

It’s been a tough year for Ripple as the blockchain company faces legal action by the US Securities and Exchange Commission, which has resulted in many crypto users and companies abandoning their relationship with the company. Despite these setbacks, Ripple appears to be gaining popularity than ever as its daily active addresses recently hit an all-time high.

The Ledger has increased its daily active address volume from around 11.3,000 to a recent high of 142.7,000, which is more than an 11-fold increase in activity during this time.

Source: Santiment

Ripple’s active addresses approaching “Spill Territory” are due to “a new development of RippleX by the Ripple team,” noted analyst “Crypto Eri”. called.

She cites the recently announced $ 250 million Creator Fund that persuaded NFT creators to stick with the XRP ledger. Additionally, the newly released Songbird log on Ripple’s Ledger is another contributing factor.

Eri also specifically mentioned on-demand liquidity (ODL) solutions, which the company has used to enter global markets such as the Middle East. In its Q3 report, Ripple noted “significant ODL growth and traction,” with ODL transactions growing 130% qoq.

“There is a lot of growth in using this asset as a fiat-fiat bridge in global remittances. I think this is definitely an indication of the ODL growth. “

Santiment analyst Brian notes that Ripple’s activity growth rate is significantly higher than that of other leading digital assets, even as its XRP token is declining due to market-wide volatility.

“This would indicate some sort of potential bullish divergence once the price of a coin begins to decline, but network level activity and daily interaction with the blockchain seem to be maintaining the bullish momentum. That could be a positive sign. “

According to analysts, social sentiment towards XRP also remains positive, with large outbreaks of social activity regularly seen. Instead of the price action, this interest is driven by the intrinsic value and use cases of Ripple:

“I think XRP owners generally understand that the award has been withheld due to the SEC lawsuit, so it may require a lot more patience than normal law. I think the basics still arouse a lot of interest. “

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