Adobe Developer: Ripple Transaction Activity Down to 2016 Level

1,000 invested in Ripple in January 2017 was worth $350,000 by the end of last year.

In a recent interview, Ripple CEO Brad Garlinghouse expressed his optimism toward the rapid growth rate of the Ripple blockchain network and revealed that the Ripple network is adding one major bank per week.

As a liquidity network, similar to the global banking system SWIFT, the Ripple network can only process large-scale, borderless transactions if major banks are already on its network and using XRP to transfer money.

Major financial institutions need to be on the Ripple network and process billions of dollars on a daily basis for Ripple to evolve into the global financial network for regulated institutions.

As the cryptocurrency market initiated the third worst correction in its history, the transaction volume and blockchain activity of Ripple plunged.

This week, Palmer revealed that the transaction volume of XRP is currently lower than its volume in 2016 when the value of XRP was less than 5 percent of the price this month.

Ripple is processing less payments per day than it was in 2016.

Since December 2017, the transaction volume and activity of most public blockchain networks have declined substantially, including Bitcoin and Ethereum.

Many cryptocurrency investors have criticized Palmer for using the transaction volume metric to measure the adoption of digital assets, but as Palmer said, if transaction volume cannot be used to measure the success and the adoption of networks that are primarily designed to settle transactions, then there exists no other metric to prove the adoption of cryptocurrencies.

Because the cryptocurrency sector largely depends on a well-established pattern of bubble-crash-build-rally, the next rally in the crypto market will most likely allow the transaction volume to increase once again.