Recent reports show that XRP has hit its highest daily transaction volume in nearly six months, signaling a key moment for the cryptocurrency as it sees growing use in payment systems and decentralized finance (DeFi). In January 2026 alone, the XRP Ledger processed 1.45 million daily transactions, continuing a steady rise in network activity that started in late 2025. This increase aligns with the launch of new payment channels through Ripple’s On-Demand Liquidity platform and the adoption of stablecoins like RLUSD.
Market expert Sam Daodu noted in a recent report for 24/7 Wall St. that historically, gaps between rising demand and stagnant prices have often come before sharp rallies. With exchange reserves at eight-year lows and growing institutional interest through XRP exchange-traded funds (ETFs), the altcoin appears to be quietly preparing for its next breakout.
Despite a brief rebound to $2.42 on January 6—a nearly two-month high—XRP’s price has since fallen back to around $2.048 at the time of writing. This drop occurred even as transactions surged, suggesting XRP has not yet translated higher usage into price gains.
Daodu explained that such a disconnect between price and on-chain activity is not unusual for XRP. He pointed out that similar gaps have frequently preceded major price moves, while also highlighting factors behind the current delay. These include market-wide consolidation, with Bitcoin and Ethereum trading sideways in early 2026, which has slowed momentum for altcoins like XRP. Profit-taking has also played a role, as many short-term holders sold after XRP’s rally to $3.65 in July 2025, creating strong resistance between $2.20 and $2.50. Daodu believes XRP may stay within this range until new catalysts emerge.
Looking ahead, Daodu suggests that XRP has historically lagged behind its on-chain progress before making explosive price jumps. In both 2017 and 2020, spikes in transaction volume and wallet activity came weeks before significant rallies. For example, in late 2020, daily transactions rose over 40% in two months while the price held around $0.25, only to surge past $0.70 weeks later in November. A similar pattern occurred in late 2017, when increased usage metrics preceded a rise from $0.30 to $3.30 by early 2018. This pattern implies that the current transaction surge could be an early sign of a delayed price breakout for XRP.
Frequently Asked Questions
Frequently Asked Questions XRP Transaction Surge Potential Price Rally
BeginnerLevel Questions
1 What does a surge in XRP transactions mean
It means that the number of XRP payments or transfers happening on the Ripple network has increased significantly in a short period In this case activity rose to 145 million unique daily users
2 Why would more transactions suggest a price rally
The basic idea is that increased usage and demand for a cryptocurrency can drive up its price More people using XRP for real purposes can signal growing adoption and confidence which investors often see as a positive sign
3 Who is the expert mentioned and should I trust this analysis
The report cites an expert analysis but specific names arent provided here Its always important to consider multiple sources and viewpoints While onchain data is factual price predictions are never guaranteed
4 Im new to crypto What is XRP
XRP is a digital asset and cryptocurrency created by Ripple Labs Its designed to facilitate fast lowcost international money transfers between financial institutions but its also traded on public exchanges
5 Does high transaction volume always lead to a price increase
Not always Volume can sometimes be inflated by a few large wallets moving funds between their own accounts or by selling pressure Its the nature and source of the transactions that matter
Advanced Practical Questions
6 Whats the difference between transaction count and unique daily users
Transaction count is the total number of transfers Unique daily users measures how many distinct wallet addresses are active The latter is often a stronger indicator of genuine network adoption as it suggests more individual participants
7 Could this surge be related to Ripples partnerships or ODL
Very likely A major use case for XRP is Ripples ODL service which uses XRP as a bridge currency for crossborder payments A spike in users could indicate that more financial institutions or payment providers are actively using the ODL network
8 What are other onchain metrics I should check alongside user growth
To get a fuller picture look at