XRP Ledger's Reserve Cut Sparks Debate Over Network Usage Growth

The XRP Ledger has implemented a significant reduction in its base account reserve, cutting it from 20 XRP in 2021 to just 1 XRP today. The move aims to lower onboarding costs for users, but analysts are questioning whether this change has led to measurable growth in network usage.

Analyst Saul pointed out that despite the twentyfold reduction in reserve requirements, there is no clear evidence of increased onboarding activity. In fact, data from Vet shows that daily active addresses only spike during XRP price rallies and do not display a lasting rise following reserve reductions.

Vet's chart compares XRP's price against daily active addresses across several market cycles, highlighting the temporary nature of any increases in activity.