XRP is closing in on a major network milestone, even as its price continues to drift lower.
At press time on Feb. 24, XRP, along with its peers were bleeding. It was down 5.4% in the past 24 hours, trading at $1.33.
But lawmakers in Arizona are still moving forward with an important piece of legislation that would make XRP a part of its digital coffers.
Related: Arizona rejects Bitcoin reserve plan, caps ATM use at $2K per day
XRP ledger activity climbs toward 2.5M daily transactions
Network data shows that daily successful transactions on the XRP Ledger have increased roughly 40% in recent weeks, and it reached 2.5 million per day on Feb. 19 and 20.
On the ledger, users process cross-border payments, execute token transfers, and support decentralized finance (DeFi) applications. For long-term investors, sustained growth in transaction count often signals expanding utility, which is a key fundamental metric beyond price speculation.
However, this is not the first time daily transactions have crossed $2.5 million. The last time in the recent past was on Feb. 5 and 6, right before the market crashed. Daily transactions had hit $2.7 million.
Its all-time high since its debut has been on Dec. 30, 2023, when daily transactions reached $6.8 million.
But not everyone is convinced the headline number tells the full story.
Some traders have pointed to blockchain data suggesting that a notable share of transactions may be originating from a small number of wallets.
One widely circulated screenshot highlighted repeated, small XRP transfers executed in rapid succession from the same address. The pattern may reflect automated activity rather than broad retail participation.
Moreover, transaction count alone does not automatically mean user adoption is increasing. If a big chunk of daily transactions is concentrated among a few wallets, interpreting the surge needs to be more nuanced.
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Arizona moves XRP into digital reserve proposal
Meanwhile, policy developments are adding a new narrative layer.
Lawmakers in Arizona advanced a bill on Feb. 20 to set up a Digital Assets Strategic Reserve Fund. Among the eligible holdings mentioned in the bill is XRP.
The proposal cleared a state legislative committee in a 4-2 vote.
Under the draft framework, the reserve could include digital assets forfeited or surrendered to the state, along with funds allocated by lawmakers. The state Treasurer would have the authority to manage and invest these assets within a fiscal year.
The bill also allows lending digital assets held in the reserve to generate returns, provided such activity does not increase financial risk to the state.
The legislation identifies Bitcoin (BTC), DigiByte, and XRP by name, while also allowing for stablecoins and non-fungible tokens. Lawmakers indicated the reserve would operate separately from Arizona's General Fund, insulating it from core state budgeting.
Related: XRP address count hits record high as new ETF debuts
This story was originally published by TheStreet on Feb 24, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
