Trader and investor Crypto Rand shared some of his charts, showing that XRP has seen a reduction in the number of dynamic addresses by 83.3%, compared to 14 other influential currencies in the crypto market.
A person has a dynamic address when their wallet provider generates one with each new transaction they make. This is important for privacy, as it prevents all transactions from being associated or tracked to a single user.
The use of a static address occurs when no changes are made after a transaction. This is the case, for example, with certain exchanges that give each person a specific address to deposit funds. In this way, all those who want to send funds to that user will have the same address, so anyone can track all the money sent and received by that user.
The famous cryptocurrency analyst showed the decrease of XRP compared to the most influential cryptocurrencies on the market.
Interesting decrease on $ XRP dynamic addresses.
Giving up or holding for Lambo? pic.twitter.com/SsjcoXYbMa
– Crypto Rand (@crypto_rand) March 31, 2020
There are now 29,208 less dynamic addresses than last month. Such a significant drop could be indicative that many investors are withdrawing their assets from the exchanges and moving them to personal wallets, as XRP's total capitalization has not been affected as much.
On the other hand, the number of Ethereum addresses increased by more than 22%, which shows the great acceptance it has due to the increasing use of its blockchain for decentralized finance applications (DeFi).
However, this drop in dynamic direction means little or nothing to Ripple. XRP maintains its market capitalization of $ 7.8 billion, remains the third largest cryptocurrency on the market, and Ripple maintains its regular and profitable practice of selling large amounts of XRP every quarter with positive results for the ecosystem (but perhaps not So Good Long Term Hodlers).
Meanwhile, some of the world's leading exchanges, such as Kraken, Bitfinex, and Paxful, increased their user base by as much as 100% during March.
Is investor interest in XRP declining? Or are you anticipating the next bullfight to see your investments grow?
Many traders and investors believe that the upcoming BTC halving could trigger a major bull run that would subsequently lead to the much desired "high season." However, cryptocurrency markets have yet to see whether the bullish sentiment associated with halving can overcome the fear introduced after the coronavirus turned into a pandemic.