Ripple’s blockchain network, XRP Ledger, has recorded significant on-chain growth over the past month. This signifies investor confidence in the network and its native token, XRP.

According to a CryptoQuant QuickTake from analyst Wenry Seoul, XRP saw an increase in automated market maker (AMM) liquidity, decentralized exchange (DEX) transaction volume, and the number of new wallets created from September 15 to October 15, 2024.

XRPL’s On-chain Analysis

Wenry noted that the XRP Ledger (XRPL) is not very popular among retail investors. However, the network’s daily transaction volume competes with major layer-1 blockchains. The analysis determines where the transactions are used on the network.

XRPL’s basic on-chain metrics, like new wallet creation and active wallets, rose by 10.39% and 14.19% to 18,321 and an average of 10,887, respectively. However, the total transactions on the network fell 17.67% to 18.82 million, and payments were reduced by 26.16% to 6.81 million. Wenry said the rise in active accounts and wallets signifies continued user engagement on the network, regardless of the decline in transactions and payments.

XRP recorded a 17.64% increase in its DEX volume from $3.91 million to $4.6 million, although the coin’s market capitalization plunged 15.24% from $103.31 million to $87.56 million.

Additionally, XRP trades fell 6.83% from 6.88 million to 6.41 million. XRPL’s listed assets and trust lines also plummeted slightly to 3,873 and 7.25 million, respectively.

“Despite fewer trades, DEX volume rose significantly, indicating more activity on decentralized exchanges even as market capitalization declined,” Wenry stated.

NFT Ecosystem Sees Less Activity

The CryptoQuant analyst further disclosed that XRPL’s AMM liquidity providers showed confidence in existing pools, as seen in the rise in deposits. Different aspects of AMM liquidity provision on XRPL recorded significant growth in the last month.

AMMDeposit and AMMVote surged by more than 62% to 24,306 and 152, respectively. AMMCreate and AMMWithdraw increased by 143% and 42% to 141 and 6,159, respectively. However, AMMBid fell 81% from 22 to 4.

Amid the rise in AMM liquidity provision, XRPL’s non-fungible token (NFT) activity declined heavily, with the network’s ecosystem recording lower volumes and fewer minted tokens.

Nevertheless, XRPL could see greater on-chain activity in the coming months, especially with Ripple’s newly launched stablecoin, RLUSD.

Ethereum is currently facing a short-squeeze risk as depicted by the rising Estimated Leverage Ratio (ELR) which acts as a crucial indicator of market sentiment.

As the ELR has increased over the past few months, it reflects a growing number of traders adopting high-leverage short positions.

Ethereum Faces Short-Squeeze Risk

CryptoQuant data, as shared by market analyst ‘ShayanBTC,’ suggests that traders are betting on further declines in ETH’s price amid an ongoing bearish outlook. With leverage levels reaching concerning highs, the futures market appears overheated, putting Ethereum at risk of a short squeeze.

ETH has shed over 2% in the past day alone and is currently trading just above $2,580. If the crypto asset price unexpectedly rises, those holding short positions may be compelled to buy back ETH to cover their losses, leading to a rapid price spike.

The 100-day moving average at $2,700 serves as a significant resistance level. As such, a breakout above this threshold could trigger substantial short liquidations, further propelling ETH’s price upward.

Decline in Institutional Appetite

Meanwhile, data also points to a waning institutional appetite for ETH in the US market despite spot Ether ETFs attracting net inflows of $11.94 million on Tuesday, primarily driven by BlackRock’s ETHA fund. Other investment vehicles posted no flows. According to CryptoQuant’s analysis shared by analyst “burakkesmeci,” Ethereum’s Coinbase Premium Index has fallen below its 14-day Simple Moving Average (SMA).

This crossover typically signals increasing selling pressure from US investors, which could potentially lead to price declines in ETH.

Looking at the Current Value, the Coinbase Premium Index stands at -0.05062437, while its 14-day Simple Moving Average (SMA 14) is -0.03906392. It is important to note that Coinbase serves as a preferred platform for institutional investors, and the fact that the current Premium Index is more negative than its SMA potentially signals that larger players are reducing their ETH exposure.

[PRESS RELEASE – Singapore, Asia, October 23rd, 2024]

• Users can convert staked ELA and rewards into tradable NFTs, burn them anytime for Bitcoin-secured ELA APY rewards, and claim the staked ELA when the lock period ends.
• Anyone can stake ELA with a validator and earn 2–3% APR, with higher rewards for longer lock periods.
• Elastos continues to build momentum for a new decentralized finance model, offering flexible liquidity, Bitcoin-backed security, and simple wallet access.

Elastos, a SmartWeb ecosystem provider, has expanded incentives for crypto users and validators with the launch of Bonded Proof of Stake (BPoS) NFTs. This new system offers users liquidity for staked assets by converting ELA and accumulated rewards into tradable NFT receipts, without interrupting rewards or waiting for the lock period to end. Through the Essentials Wallet, users can stake Bitcoin-secured ELA with a validator to earn 2–3% APR, with higher rewards for longer lock periods.

Today’s announcement underscores Elastos’ commitment to delivering value across the Smart Web ecosystem. Users can easily stake ELA tokens with BPoS validators on the Elastos Mainchain using the Essentials Wallet and issue BPoS NFTs. These NFTs can be freely traded or transferred on the Elastos Smart Chain (ESC), offering liquidity without affecting the staking period. Market participants can acquire NFTs to gain access to Mainchain rewards and the underlying staked asset. While the staked ELA remains locked until the staking period ends, NFT holders can burn their NFTs anytime to claim accumulated APY rewards.

“We are committed to delivering technologies that will create long-term value for our users and the ecosystem,” said Jonathan Hargreaves, Head of Global Growth at Elastos. “We are now in a position to deliver the tools and architecture that enable users to trade Bitcoin-backed value through ELA on Elastos without unstaking the underlying asset. This unlocks new market opportunities and sets the stage for BPoS NFTs to be used as collateral in BeL2’s upcoming Arbiter network. Ultimately, we aim to build a new model for decentralized finance backed by Bitcoin security, and we are entering a phase where users will increasingly benefit from these innovations.”

Backed by Bitcoin Security

These NFTs represent receipts to claim ELA assets secured by Bitcoin’s hash power through Auxiliary Proof of Work (AuxPoW) and validators via the BPoS mechanism on the Elastos Mainchain. With 293.69 EH/s of Bitcoin’s total 580.74 EH/s hash rate, nearly half of Bitcoin’s security reinforces Elastos’ ELA, anchoring it in Bitcoin’s infrastructure without additional energy use and introducing new utility through mintable and burnable NFTs.

“With ELA’s fixed supply cap of 28.22 million, Bitcoin miner-shared security, and a 4-year halving cycle, ELA embodies Satoshi’s merge-mining BitDNS and Generalizing Bitcoin vision laid out on the Bitcoin forum in 2010,” added Sasha Mitchell, Head of BeL2. “Our roadmap continues to progress with the upcoming BeL2 arbiter network, which will support Native Bitcoin DeFi, allowing nodes to collateralize BPoS NFTs and unlock multiple revenue opportunities beyond ELA APY by supporting BTC-based services.”

Launching the BeL2 Arbiter Network

Elastos plans to launch the BeL2 arbiter network by the end of 2024. This network will allow BPoS NFTs to be used as collateral for supporting time-based transactions such as loans and stablecoin pegs, including dispute resolution services. Arbiter nodes using these NFTs will earn Bitcoin and ELA rewards without moving Bitcoin from the mainnet. This approach combines security, liquidity, and financial innovation, positioning Elastos as a key player in the evolution of blockchain-based finance.

About Elastos

Elastos is a public blockchain project that integrates blockchain technology with a suite of reimagined platform components to create a modern internet infrastructure that provides intrinsic protection for privacy and digital asset ownership. Its mission is to build accessible, open-source services that empower developers to create an internet where individuals own and control their data.

The Elastos SmartWeb platform allows organizations to recalibrate how the internet functions to better manage their data and privacy.

https://elastos.info

https://www.linkedin.com/company/elastosinfo/