XRP's market price staged a strong recovery, surging nearly 10% in a single day to briefly touch a weekly high of around $1.47, as it participated in a broader cryptocurrency market rebound. However, this bullish price action starkly contrasts with a dramatic collapse in on-chain network activity.
According to data from XRPSCAN, payment volume on the XRP Ledger (XRPL) plummeted by more than 70% within a 24-hour period. The network processed approximately 230.8 million XRP in payments on March 5, 2026, a sharp decline from the roughly 769 million XRP processed just one day earlier. This creates a significant divergence between improving market sentiment and weakening real-world transactional usage of the blockchain.
The derivatives market presents mixed signals. Total open interest for XRP derivatives across exchanges has climbed above $2.36 billion, indicating increased speculative positioning. Conversely, data from CoinGlass shows XRP open interest on Coinbase specifically declined by about 3.62%, suggesting some U.S.-based traders reduced their exposure despite the price rally, potentially signaling institutional hesitation.
Analysts note that XRP is currently in a consolidation phase, trading near $1.39 and supported by an upward trendline following the recent market dip. The asset faces key resistance at the 26-day exponential moving average. The recent ~30% surge is viewed as a potential structural turning point, demonstrating the market's capacity for strong bullish impulses and possibly setting the stage for a more extensive retrace if momentum returns.
Despite the plunge in payment volume, underlying network transaction throughput has remained relatively steady at an average of nearly two million successful transactions per day, indicating the core payment infrastructure remains operational. Market observers continue to monitor whether network usage will eventually recover to align with the renewed price momentum.
