XRP Ledger Activity Surges With DEX Volume Exceeding $1 Billion in Q4 2024

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The XRP Ledger (XRPL) has entered a new phase of growth, marked by a dramatic surge in decentralized exchange (DEX) volume, on-chain activity, and institutional interest throughout the final quarter of 2024. According to Ripple’s Q4 2024 XRP Markets report, the network experienced a transformative period fueled by rising market confidence, regulatory clarity, and expanding ecosystem adoption.

This resurgence has reestablished XRP as a leading digital asset in both utility and investor appeal—particularly as decentralized finance (DeFi) activity on XRPL reached unprecedented levels.

Record-Breaking DEX Volume and AMM Adoption

Despite a minor 2.86% dip in total transaction count to 167 million, the XRP Ledger demonstrated explosive growth in value-driven activity. The most significant development was the surge in Automated Market Maker (AMM) usage, which saw swap volume skyrocket from $31.23 million in Q3 to **$774.15 million in Q4**—a more than 2,400% increase.

This meteoric rise directly contributed to the XRPL DEX surpassing $1 billion in trading volume**, up from just $63.4 million the previous quarter. AMM-based transactions now account for 77% of all network activity**, signaling a fundamental shift toward DeFi-centric engagement.

The AMM functionality, introduced in March 2024, has become a cornerstone of XRPL’s financial infrastructure. It enables permissionless liquidity pools, efficient price discovery, and reduced slippage—features that are attracting both retail and institutional participants.

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Surge in User Adoption and Wallet Growth

Network adoption reached historic highs during Q4, with new wallet registrations jumping from 140,000 in Q3 to 709,000—a fivefold increase. This spike reflects growing global interest in XRPL’s fast, low-cost, and energy-efficient blockchain.

In parallel, trustlines (which allow users to hold issued tokens) grew from 7.3 million to 7.9 million, with 600,000 new connections established. Notably, 37,000 of these linked to Ripple’s RLUSD stablecoin, indicating strong early traction for the dollar-pegged asset.

The rise of First Ledger, a meme coin launchpad on XRPL, also played a pivotal role in driving user engagement. Projects like ARMY, an XRP-based meme coin launched in January 2025, achieved a $100 million market cap within days, showcasing the network’s ability to support viral community-driven initiatives.

Regulatory Clarity Fuels Investor Confidence

For years, XRP’s growth was hindered by the U.S. Securities and Exchange Commission’s (SEC) prolonged legal action against Ripple. However, with regulatory uncertainty significantly reduced by late 2024, market sentiment shifted decisively.

“Ripple and the broader XRP ecosystem had been stifled by the SEC’s actions, which artificially manipulated the market, dampened trader confidence, and held back growth. Seven years ago, before the SEC anointed ETH and attacked XRP and Ripple, XRP was the second most valuable digital asset. With regulatory overhang easing, XRP found itself in a new position of strength,” Ripple stated.

This newfound clarity has attracted long-term investors and institutional players who had previously remained on the sidelines. Unlike speculative short-term traders, these participants are building strategic positions based on XRPL’s technological strengths and expanding use cases.

Price Rally and On-Chain Economic Activity

XRP’s price performance in Q4 mirrored its on-chain momentum. Following Donald Trump’s pro-crypto election victory in November 2024, the average closing price surged from $0.55 to $1.43, peaking at $2.80 by year-end—a 280% quarterly gain.

This rally triggered increased transaction activity and higher network fees, leading to a notable rise in token burns. In Q4 alone, 724,000 XRP were burned, up from 592,000 in Q3. These burns—part of XRPL’s deflationary mechanism—further reinforce scarcity and long-term value accrual.

Institutional Trading Volume Soars Post-Election

The U.S. presidential election acted as a catalyst for broader market participation. Ripple reported that average daily trading volume jumped from $500 million in October to $5 billion by mid-November, sustaining elevated levels through December.

On December 2, trading volume across major exchanges neared $25 billion, reflecting intense institutional and retail interest.

Binance led the charge with 36% of total spot volume, followed by South Korea’s Upbit (20%) and Coinbase (9%). Notably, Coinbase doubled its market share post-election, signaling growing U.S.-based investor confidence in XRP as regulatory fears recede.

“After the US election, US exchanges like Coinbase and Kraken managed to get more shares from Bybit or Crypto.com. Nevertheless, Binance, Bybit and Upbit accounted for over 60% of the total traded volume,” Ripple explained.

While offshore platforms still dominate trading activity, the increased presence of regulated U.S. exchanges suggests a shift toward compliant, mainstream adoption.

FAQ: Understanding the XRP Ledger Surge

Q: What caused the surge in XRPL DEX volume in Q4 2024?
A: The primary driver was the rapid adoption of Automated Market Makers (AMMs), which increased swap volume from $31 million to over $774 million. This innovation made decentralized trading more accessible and efficient on XRPL.

Q: How did regulatory changes impact XRP’s performance?
A: The resolution of the SEC lawsuit removed years of uncertainty, restoring investor confidence and enabling institutions to engage with XRP without legal hesitation.

Q: What role did meme coins play in XRPL growth?
A: Meme coins like ARMY attracted new users and capital to the ecosystem. Platforms like First Ledger made it easy to launch and trade these tokens, boosting network activity.

Q: Is XRP now considered a security?
A: Recent regulatory developments have treated XRP as a non-security for trading purposes, especially after court rulings clarified its status as a currency rather than an investment contract.

Q: How does XRP compare to other DeFi blockchains?
A: XRPL offers faster settlement (3-5 seconds), lower fees (fractions of a cent), and built-in stablecoin support—making it highly competitive with Ethereum and Solana for DeFi applications.

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Looking Ahead: The Future of XRPL

With DEX volume exceeding $1 billion, wallet growth accelerating, and institutional interest returning, the XRP Ledger is no longer just a payments protocol—it’s evolving into a full-fledged financial ecosystem.

Future developments may include deeper integration with central bank digital currencies (CBDCs), expanded stablecoin issuance, and cross-border DeFi applications. As more developers build on XRPL, its role in global finance is poised to expand even further.

The convergence of technological innovation, regulatory progress, and market demand has positioned XRP for sustained relevance in the digital asset landscape.

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