XRP On-Chain Activity Surges, But New User Growth Remains Stagnant

XRP's on-chain activity has seen a significant increase in August, but new user growth remains stagnant, according to recent reports. The average daily number of active addresses for XRP was about 35,700, up from 26,400 in July, an increase of approximately 35%.

However, the average number of new addresses per day during the same period remained roughly at 2,260, with little change. This suggests that the increased activity is mainly from existing users raising their frequency of use, rather than an influx of new participants into the network.

Market analyst Xaif Crypto noted that an increase in active addresses does not necessarily mean new buying power is emerging. The same group of users can increase trading activity without increasing their holdings, or they may just be moving tokens back and forth between exchanges and wallets.

The article also mentions that Santiment data show the number of wallets holding at least 1 million XRP increased by 32% in the past three months, even though XRP's total market capitalization fell during this period. This indicates that some large holders have not exited the market due to weak prices, but instead chose to increase their holdings.