Market Sees Record-Breaking XRP Velocity—Here’s What it Means ⋆ ZyCrypto

XRP just logged one of its most active periods in years, with a key on-chain metric flashing a rare signal that analysts say reflects a major shift in market behavior.

According to new data from CryptoQuant, XRPs Velocity metric surged to a yearly high of 0.0324 on December 2, marking a sharp increase in how frequently XRP is circulating across the network.

Velocity tracks how rapidly an asset moves between participants. This sudden spike indicates XRP is being traded, transferred, and deployed at an accelerated rate rather than sitting idle in cold storage or long-term holding wallets.

Crypto Onchain emphasized that such activity pointing to elevated economic activity on the XRP Ledger.

The timing is notable, given XRP‘s price dropped 5.2% over the past 24 hours. The coin underperformed the broader market amid risk-off sentiment, rising Bitcoin dominance, and concerns tied to Ripple’s recent 1 billion XRP escrow unlock.

Technical weakness below the $2.21 support has also weighed on short-term sentiment. Yet on-chain engagement shows that participation is rising, and network activity is accelerating.

This increase in circulation coincides with discussion about long-term supply dynamics. EasyA Labs co-founder Phil Kwok noted that true supply shocks require XRP to be removed from the open market.

Locking XRP in liquidity pools, lending markets, and collateral systems reduces circulating supply, tightening available liquidity. With XRPLs EVM sidechain and AMMs now live, that outlook is gaining relevance.

XRP ETFs continue to attract inflows, with Canary Capitals product nearing $1B in AUM.

XRP‘s record-breaking velocity suggests deeper network engagement at a moment when price action alone doesn’t tell the whole story. Whether this activity translates into a sustained recovery hinges on breaking resistance near $2.45 and proving XRPLs DeFi ambitions can scale into 2026.