XRP Ledger, payment volume plummets 75%... "Thought it was a rebound, but it's a crisis"

▲ XRP/AI-generated image

Concerns are growing about a slowdown in network activity as the XRP Ledger's payment volume has plummeted by up to 75% in a short period.

U.Today reported on May 5 (local time) that the XRP Ledger's payment volume had sharply dropped by approximately 70% to 75% over a recent short period. This indicates a significant contraction in transaction activity, which can be interpreted as a cooling phase after high activity, a decrease in participants, or weakened demand for transfers.

Price trends and network activity are diverging. U.Today analyzed that XRP is maintaining a narrow sideways movement around $1.30 to $1.40 and remains below key moving averages, indicating that the overall trend is still under pressure. Attempts to rise continue to meet resistance, and the market structure makes it difficult to consider it fully recovered.

The decrease in payment volume acts as a more sensitive variable for XRP. As the XRP Ledger is designed primarily for payment and settlement functions, a reduction in usage can directly impact how the market values the ledger. U.Today pointed out that because XRP relies more heavily on real-world usage than other assets, a contraction in payment activity signifies more than just a simple drop in metrics.

However, there is also an interpretation that this sharp drop in payment volume does not necessarily imply only structural weakness. If the previous surge in activity exceeded sustainable levels, the current phase could be a process of network usage normalizing. U.Today explained that the current trend might be a readjustment phase after overheating, rather than a complete bearish signal.

In terms of chart structure, XRP remains in a compression zone. The falling resistance line continues to lower, while the price forms and holds a horizontal base. U.Today suggested that investors should watch two things in the future. The first is whether payment activity stabilizes or decreases further. If on-chain usage recovers, it could strengthen the bullish argument.

The second is whether the price range of $1 to $1.40 is defended. Maintaining this range preserves XRP's price base, but losing this range increases the likelihood of further declines. The sharp drop in XRP Ledger's payment volume indicates a situation where the network's real-world usage and price structure are simultaneously being tested.

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