XRP's price is on a tear. The crypto asset surged over 20% in the past week. This rally coincides with a spike in network activity.
Crypto analytics firm Santiment spotted the trend. They reported a surge in new addresses and total interactions on the XRP Ledger (XRPL).
"XRP Ledger is seeing a substantial amount of both new addresses created and total addresses interacting on the network," Santiment noted. "Both are at their highest levels since March."
The firm sees this as a positive sign. However, they warn of a possible "FOMO effect" in the early stages.
"There is generally positive movement with an uptick in network activity like this," Santiment explained. But they added a caveat. "There is often a 'FOMO effect' at the initial stages when the spike happens that causes a correction like we are seeing."
The real test, according to Santiment, is whether XRP can maintain these activity levels.
As of writing, XRP is trading at $0.574. It's up nearly 2.5% in the last 24 hours.
XRP currently ranks 8th by market cap among cryptocurrencies.
The firm also weighed in on Solana, Ethereum's competitor. They're bullish on its short-term prospects.
"The Solana faithful have been rewarded for their patience," Santiment stated. SOL prices have jumped 33% since July 4th.
Santiment reckons this climb is fueled by "crowd doubt" towards SOL. They believe $200 is within reach "until FOMO replaces the FUD."
SOL is currently trading at $169.33. It's up over 7% in a day and nearly 22% in a week. Solana holds the 5th spot by market cap.