XRP Price Rally Sparks Debate as On-Chain Activity Plummets 70%

Recently, the price of XRP has rebounded strongly amid the overall stabilization of the cryptocurrency market, with a single-day gain of nearly 10%, peaking at $1.47 before settling around $1.42. However, this price recovery has not been accompanied by a corresponding increase in network usage, but rather exposes a clear divergence.

Data shows that the total amount of XRP payments plummeted by more than 70% in a single day, from 769 million XRP to less than 230 million XRP. This sharp contraction in on-chain metrics contrasts sharply with the price movement. Typically, a sustained rise in asset prices would drive increased trading activity, but key indicators such as payment frequency and transaction flow on the current XRP network remain at recent lows, suggesting that this rebound may be driven more by market sentiment and speculative behavior than by genuine use case expansion.

In the derivatives market, the total open interest in XRP has exceeded $2.36 billion, with the short-term price surge partly due to a long squeeze triggered by the forced liquidation of short positions. However, it is worth noting that XRP open interest on major trading platform Coinbase has bucked the trend, falling by about 3.62%, reflecting that some US traders remain cautious about the current market and have not regained confidence. Overall, while XRP's short-term rebound has gained technical support, the continued sluggishness of on-chain activity still casts uncertainty on the subsequent price movement. Market participants are closely watching: is it the prelude to a new bull market, or just a brief, leverage-driven frenzy?