XRP DEX Hits 954K Transactions as Price Faces Selling Pressure
The XRP Ledger’s native decentralized exchange (DEX) recently reached an all-time high of 954,000 daily transactions, suggesting increased network activity. However, this activity coincides with a significant decline in the XRP token's price, dropping from $3 in October to $2.21 as of now. Analysts attribute the surge in transactions to potential large-scale selling, whale distribution, or automated arbitrage trading rather than genuine buying interest. Meanwhile, selling by large holders contributed to a 15.9% weekly price drop, with XRP down 39% from its all-time high in July. Broader market turbulence has also weighed on cryptocurrencies, with Bitcoin and Ethereum experiencing sharp price declines. Analysts speculate that XRP could reach an accumulation zone at $1.94, but market confidence remains low, reflected in the Fear & Greed Index.
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Record XRP DEX Transactions
The XRP Ledger’s native decentralized exchange (DEX) just hit an all-time high of 954,000 daily transactions on November 4, according to on-chain data. While this surge marked one of the busiest days in recent months for the network, the market performance of its associated XRP token tells a different story.
Transaction Growth vs Price Decline
At first glance, the increase in transactions appeared to signal stronger network health and adoption within the XRP ecosystem. However, a deeper examination revealed a disconnection. According to analyst CryptoOnchain:
- Unlike the July transaction surge, which coincided with a major price jump, the latest record occurred as XRP’s price dropped from $3 in early October to $2.21 at the time of writing.
- This suggests the high transaction volume may not represent genuine buying interest, pointing instead to potential large-scale selling, whale distribution, or automated arbitrage trading.
CryptoOnchain stated: “Elevated network activity is not always bullish,” warning investors to view this discrepancy as a potential red flag until price action aligns with on-chain growth.
Price Analysis and Market Sentiment
Data from CoinGecko confirms XRP’s downward trajectory:
- The asset has fallen 15.9% over the past week and 26% in the last month.
- It currently trades almost 39% below its July all-time high of $3.65.
Whale activity has intensified the decline, with large XRP holders selling 900,000 tokens in just five days. This contributed to the week’s double-digit losses. Additionally, recent selling behavior may continue to weigh on market sentiment, despite a slowdown in whale-to-exchange transfers since late October.
Broader Crypto Market Turmoil
The wider cryptocurrency market is also facing troubles:
- Bitcoin (BTC) has fallen below $99,000 for the first time in five months.
- Ethereum (ETH) dropped under $3,200.
In total, over $1.75 billion in leveraged positions were liquidated within 24 hours, with $38.6 million tied to XRP. These developments underscore the volatile state of the crypto market.
Possible Recovery for XRP
Amidst the downturn, analyst Egrag Crypto expressed cautious optimism:
- He suggested that XRP’s “stronger resilience” compared to Bitcoin and Ethereum could signal the end of the selloff.
- The analyst identified a potential “accumulation zone” around $1.94, speculating that the current weakness might represent the final shakeout before recovery.
However, market confidence remains fragile, with CoinMarketCap’s Fear & Greed Index recently dropping to 20, its lowest level in months.