On-chain data revealed a dramatic 99% plunge in XRP Ledger activity over a 48-hour period, sparking initial alarm. However, market analysts have clarified that the sharp decline is a timing artifact caused by typical weekend liquidity gaps, not a sign of lasting network disruption or fundamental damage.
The collapse in activity coincided with a weekend slowdown in institutional and enterprise operations, which are primary drivers of the XRP Ledger's payment volumes. Key activities such as market making, cross-border settlement testing, and institutional transfers largely pause outside of standard business hours. Because the network's activity is heavily concentrated in these professional flows rather than continuous retail usage, reported metrics can experience extreme percentage swings when major participants step back.
Analysts noted that the severity of the reported 99% drop was exaggerated by elevated activity levels prior to the weekend, magnifying the percentage change. Price action for XRP remained restrained, holding above short-term support levels despite facing resistance near longer-term exponential moving averages. Trading volumes were thin and irregular during the low-liquidity sessions, reinforcing the interpretation of a temporary slowdown.
Historical patterns indicate such activity routinely rebounds at the start of the trading week, with payment volumes often recovering before price action stabilizes. A potential 5x to 10x surge in ledger activity from weekend lows is considered a predictable normalization effect rather than a sign of explosive growth. The crucial factor for the market is whether increased on-chain activity translates into sustained price movement, which analysts say requires XRP to break through key technical resistance levels with volume confirmation.
The immediate risk identified is heightened volatility due to shallow liquidity, which can exaggerate price movements in either direction. The underlying conclusion is that the XRP Ledger's fundamentals remain intact, with the dramatic headline figure reflecting a predictable, cyclical liquidity event rather than structural weakness.
