The digital asset XRP has reportedly experienced an 8% drop in value following a network disruption lasting nearly an hour on the XRP Ledger. Reports indicate that the price has declined to around $2.50.
Network Outage and Price Movements
During the outage on Tuesday, block production ceased, and the network froze at a block height of 93927173. Although the system quickly returned to normal operations, the decline in price to critical support levels raised market concerns.
Official Statements and Community Perspectives
Ripple 
$2‘s Chief Technology Officer, David Schwartz, stated that the exact cause of the issue has not yet been identified. While consensus on the network continued, the inability to publish validations led to a disruption in the process.
David Schwartz: “The exact cause of the issue has not yet been clarified. The disruption in validation publishing was resolved with manual interventions.”
Additionally, Edo Farina, manager of the XRP Healthcare team, highlighted that the network has accumulated 110,000 hours of uptime since its launch in 2012, emphasizing that the outage reflects 99.999% efficiency in overall performance.
In recent weeks, the XRP Ledger implemented the AMMClawback upgrade to enhance compliance for automated market maker pools. This step is considered a significant improvement in meeting regulatory requirements.
Market data shows that XRP’s daily transaction volume has decreased by 41%, dropping to $13.11 billion, while there has been an increase in short-selling and liquidation activities in the futures market. This situation reflects a cautious approach among traders.
Recently, Ripple’s release of 500 million XRP has indicated a growing interest from investors in the crypto asset. According to investment reports, there has been a recorded inflow of $105 million into XRP since the beginning of the year, with $15 million noted last week. Institutional efforts for spot XRP ETF continue to support interest in the digital asset.
Overall assessments suggest that the short-term effects of the network disruption have been mitigated through the system’s quick response and recovery processes. Market data and institutional moves indicate that investors maintain a cautious approach toward the digital asset. In light of these developments, it may be beneficial for investors to monitor network performance improvements and the long-term impacts of technical adjustments closely.
