Dormant tokens in the XRP Ledger have begun to stir, setting the stage for May’s market activity.
New data suggest the blockchain is seeing another “huge blast” in dormant XRP movement, alongside increasing open interest (AI).
Surge in Old XRP Coin Movement
According to Santiment’s Token Age Consumed metric, there has been a significant surge in the movement of old XRP coins on the ledger, similar to the spike observed just before the market downturn on April 13th, during which the cryptocurrency plummeted by 16%.
However, in this particular case, there’s a compelling argument suggesting that this movement is tied to potential “buy the dip” interest from influential stakeholders, the crypto-analytic platform said in its latest findings.
“This time around, however, there is an argument that this old coin movement is related to potential #buythedip interest from key stakeholders, and prices have been climbing mildly since this May spike occurred. Also, keep in mind the increasing open interest on exchanges, which has just reached a 3-week high.”
Interestingly, despite this movement, XRP prices have shown a mild climb since the May spike occurred. Moreover, the increasing open interest in exchanges, which hit $483.4 million, reaching a 3-week high, also needs to be taken into account. As such, investors rushing to rake in XRP coins amidst the asset’s ongoing relief rally could potentially increase confidence among market players.
The latest development follows XRP Ledger developers’ recent proposal which suggested implementing direct lending to users through the blockchain.
They propose a system for offering fixed-term loans with interest, using pooled funds, and without the need for on-chain collateral. This method depends on off-chain underwriting and risk management, as well as what developers call a “First-Loss Capital protection scheme” to safeguard the protocol.
Introducing XRPL Solutions in Japan
Last month, Ripple, which uses XRP Ledger for its cross-border payment settlement, announced a strategic partnership with HashKey DX to introduce XRPL-based blockchain solutions to the Japanese market.
With this joint venture, SBI Group will become the first Japanese corporation to leverage this supply chain finance solution.
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