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XRP, the sixth largest cryptocurrency by market capitalization, has seen an interesting trend in its transaction activity, despite a few notable declines in other metrics. A recent analysis by a CryptoQuant analyst, Wenry, sheds light on key trends within the XRP ecosystem, offering insights into the activity happening behind the scenes. The analyst particularly revealed where XRP transactions are used by category activity. Related Reading: XRP Price Stays Range-Bound: Will It Soon Make a Move? XRP Transactions: Decline in NFT Activity And Rise in DEX Volume According to Wenry, XRP’s daily transaction volume has been “competitive with major Layer 1 networks,” showing that XRP’s Ledger remains highly active, even though it is less known to retail investors than other blockchain networks. In his analysis posted on the CryptoQuant QuickTake platform, Wenry highlighted that between September 15 and October 15, 2023, the creation of new wallets on the XRP Ledger increased by 10.39%, reaching a total of 18,321 new accounts. However, total transactions on the network fell by 17.57% to 18.82 million, and payments dropped by 26.16% to 6.81 million. Despite these declines, the number of active wallets on XRPL increased by 14.19%, indicating sustained user engagement with the platform. These numbers suggest that while fewer transactions are being processed, the active user base continues to grow. Wenry’s analysis explored on-chain activity related to token trading and decentralized exchange (DEX) volume. While total trades on the XRP Ledger dropped by 6.83%, decentralized exchange volume increased by 17.64%, from $3.91 million to $4.60 million. This shift suggests that despite a slight decrease in overall trading, more activity occurred on decentralized platforms, demonstrating continued interest in decentralized finance (DeFi) solutions on the XRP Ledger. Regarding non-fungible tokens (NFTs), the analysis showed a significant decline in NFT-related activities on the XRPL. NFTokenMint, which tracks new NFTs created on the network, dropped by 70.66%, from 65,021 to 19,076. Similarly, NFTokenAcceptOffer, which represents the acceptance of offers to buy NFTs, fell by 30.88%. Despite these declines, NFTokenCancelOffer, a metric that tracks canceled NFT transactions, slightly increased by 0.20%, indicating that while fewer NFTs were being minted or traded, some stability remained in the broader NFT ecosystem. AMM Liquidity and Increased Participation A key highlight of the analysis was the strong growth in Automated Market Maker (AMM) liquidity on the XRP Ledger. AMM-related metrics saw considerable increases, with AMMDeposit rising by 62.35%, AMMCreate increasing by 143.10%, and AMMWithdraw climbing by 42.97%. These increases reflect rising confidence in the liquidity pools on the XRPL, as more participants provide liquidity and create new pools. The surge in AMMCreate, which jumped from 58 to 141, suggests that more users are participating in liquidity provision on the network. Related Reading: XRP Network Activity Surges As Price Seeks To Break $0.55 Resistance However, one area of decline in AMM-related activity was the AMMBid, which dropped by 81.82%. Despite this decrease, the overall rise in liquidity deposits and the creation of new pools indicate that the XRP Ledger’s decentralized liquidity offerings remain strong. According to Wenry, these metrics highlight the growing trust in existing liquidity pools and the broader AMM ecosystem on the XRP Ledger. Featured image created with DALL-E, Chart from TradingView