In a striking turn of events, the transaction fees on the XRP network have plummeted by an astounding 91.5% since February 2025, signaling a notable downturn in demand for utilizing the blockchain. This decline raises questions about the future viability and adoption of XRP as a preferred payment solution.
According to on-chain analytics from Glassnode, the total transaction fees paid by users on the XRP blockchain have seen a troubling decline. Glassnode’s recent analysis highlights the 90-day simple moving average (SMA) of total transaction fees, which reflects the fee landscape on the XRP network.
The analytics firm shared a chart illustrating the fluctuations in transaction fees over the past few years. Notably, the fees surged during late 2024 and early 2025, correlating with a spike in the cryptocurrency’s market price. However, despite a subsequent price rally in the second half of 2025, the 90-day SMA for transaction fees failed to mirror this growth, instead experiencing a contraction.
The downward trend became particularly pronounced as 2025 drew to a close, culminating in a significant drop in total transaction fees by December. So far in 2026, while a modicum of stability has been observed, the overall trajectory remains downward.
Currently, the 90-day SMA for total transaction fees sits at approximately 500 XRP, a staggering decline from the peak of 5,900 XRP seen in February last year. Glassnode has pointed out that such a drastic drop cannot merely be attributed to a market adjustment. Instead, it reflects a substantial contraction in organic transaction demand on the XRP network following its speculative peak.
It’s worth noting that XRP is not alone in its struggles; other cryptocurrency networks are also grappling with reduced transaction activity. Capriole Investments’ founder Charles Edwards recently highlighted that Bitcoin’s annual fees have dipped to their lowest levels since 2019. This decline is significant, particularly as Bitcoin achieved an all-time high in 2025 despite the downward trend in transaction fees.
The decline in Bitcoin’s annual fees, which encompass total miner revenue, suggests that transaction fees are decreasing even as the asset’s block subsidy is rising due to its USD price. This paradox indicates a broader trend affecting multiple cryptocurrency networks, which may raise concerns about their long-term sustainability.
Current Bitcoin Price
On Monday, Bitcoin briefly surpassed the $64,000 mark but has since retreated to around $60,900. The fluctuations in Bitcoin’s price, coupled with the declining transaction fees, paint a complex picture for the cryptocurrency market moving forward.
As the landscape continues to evolve, it remains to be seen how these trends will impact the adoption and functionality of both XRP and Bitcoin, as well as the broader cryptocurrency ecosystem.
