What does it mean for XPR prices?

TL:DR;

Even though it’s only the beginning of the year, right after the holidays, Ripple’s network usage has gone through the roof with a massive spike. What does this mean for XRP prices, given that the asset is already up around 20% by 2025?

The end of the year and the beginning of the new are usually slow days for the cryptocurrency markets, as traders tend to stay away and spend their time on other activities. This was also evident in recent weeks, as trading volumes for almost all digital assets, including XRP, fell on December 31st.

However, the landscape changed in another direction the next day. Ali Martinez outlined a massive milestone for XRP, showing that transaction volume soared to over $7 billion on January 1st. This was the highest level in at least a month, as the days before and after that date saw much less activity.

$XRP recently experienced an increase in transaction volume, surpassing $7 billion! pic.twitter.com/Mm82HzpctC

— Ali (@ali_charts) January 4, 2025

In terms of XRP price movements, this development could be considered bullish if it persists. A single peak and subsequent drop could lead to immediate but brief price increases, which is actually what happened at the start of the new year. The asset moved from around $2 to $2.50 in the first few days, but has fallen to $2.40 on a daily basis.

ChatGPT stated that XRP could benefit from these prolonged increases in transaction volumes, but under certain conditions. These include the rise in demand and utility of the underlying token, general market sentiment, and XRP’s correlation to broader market trends.

However, the AI ​​chatbot warned that such high transaction volumes “could temporarily inflate the price, but if it is only due to speculation, the price could correct sharply” in what are known as risks of “pump and dump”.

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