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December 2, 2024
XRP Ledger, (XRP)
Quarterly Community Report
State of XRP Ledger Q3 2024
Matt Kreiser [email protected] · Senior Research Analyst
Key Insights
● In September, Ripple, along with the broader XRP community, announced plans to
introduce native smart contracts on the XRPL via an upcoming XLS proposal.
● Average daily transactions increased 94% QoQ to 1.7 million and total new addresses
increased 10% to 105,000.
● In August, Ripple announced that its USD-pegged stablecoin RLUSD is in private beta
on both the XRPL and Ethereum and pending regulatory approval .
● Following proposals introduced last quarter , a native lending protocol is in
development for users to lend and borrow supported assets such as XRP,
stablecoins, wBTC, and wETH using single-asset vaults.
● Amendments were passed introducing decentralized identity DID, which enables
verifiable digital identities, and price oracles for pricing wrapped/bridged assets, to
the XRP Ledger.
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State of XRP Ledger Q3 2024 • 1
Primer
XRP Ledger ( XRP ) has been running for over a decade, offering cross-currency and
cross-border payments, and tokenization, among other features. Core value propositions of the
XRP Ledger XRPL include fast and cheap transactions (relative to other currency-focused
networks) and native functionalities — such as tokens, NFTs, a decentralized exchange DEX,
escrow functionality, embedded compliance, and token management.
With these capabilities, the XRPL can execute many of the same functions as other networks.
NFTs, stablecoins, synthetic assets, and other markets found on programmable settlement
layers are available on the XRPL as native functionality with composability through enshrined
mechanisms such as a central limit order book CLOB and automated market maker AMM.
The XRPL base layer doesn't currently support arbitrary smart contracts, which was a
deliberate design choice to prioritize security and stability through simplicity. However, the
community is actively exploring ways to introduce advanced scripting functionality, such as
through solutions like Hooks. Additionally, alternative execution environments, via sidechains,
add additional functionality and use cases to the overall ecosystem.
The XRPL is supported by various development groups and individuals, including Ripple , InFTF
(formerly XRPL Foundation), XRPL Labs (and Xaman ), and XRPL Commons . It provides a digital
payment infrastructure not just for individuals but also for existing financial entities, such as
commercial banks and fintechs, with the community's deep interest in B2B and B2C solutions
for finance. For a full primer on XRP Ledger, refer to our Initiation of Coverage report .
Website / Reddit / Discord

State of XRP Ledger Q3 2024 • 2
Key Metrics

State of XRP Ledger Q3 2024 • 3
Research Contents
Primer 1
Key Metrics 2
Financial Analysis 4
Network Analysis 6
DEX 10
Servers 11
Ecosystem Analysis 11
DeFi 12
RWAs 15
NFTs 16
Sidechains 17
Coreum 18
XRPL EVM Sidechain 18
Root Network 19
Hooks 19
Governance 19
Other Notable Updates 20
XRPL Community Support Programs 21
Closing Summary 21

State of XRP Ledger Q3 2024 • 4
State of XRP Ledger Q3 2024
Financial Analysis
At the close of Q3ʼ24, the XRPLʼs native token, XRP , was the seventh largest crypto asset by
market capitalization at $34.7 billion. Its circulating market cap increased 31.1% QoQ. XRPʼs
price increased 28.5% QoQ, with the discrepancy between market cap and price due to a 1.6%
increase in circulating supply. Notably, in September asset management firm Grayscale
launched its XRP Trust, providing an additional way for accredited investors to gain exposure to
the asset. Additionally, in October and November, cryptocurrency exchange-traded fund ETF
issuers Bitwise , Canary , and 21Shares each completed S1 filings to launch an XRP ETF.
On XRPL, transaction fees are systematically burned , applying deflationary pressure to the total
supply of 100 billion XRP. Since the XRP Ledgerʼs inception, nearly 13 million XRP $7.9 million
at the close of Q3ʼ24 has been burned. This low burn rate is due to the relatively low
transaction fees $0.002 per transaction) on the network. Counteracting the burn rate, 1 billion
XRP $610 million at the close of Q3ʼ24 is released from escrow to Ripple per month. Any XRP
not spent or distributed by Ripple in that month is put into new escrow contracts. This system
will continue until the remaining 39 billion XRP becomes liquid. After all escrowed tokens
become liquid, the deflationary pressure from burned fees will be the only variable related to
supply.
Unlike many other cryptocurrency networks, the XRPL does not distribute rewards or
transaction fees to its validators. In Proof-of-Association PoA , rather than receiving rewards,
validators are mainly incentivized by supporting the decentralization of the network, similar to a