Application-related transactions on the XRP Ledger are increasing rapidly.

On July 13 local time, blockchain outlet The Crypto Basic reported that weekly source tag transactions on the XRP Ledger totalled 676,800, up 28.6 percent from the first week of tracking.

A source tag is an indicator that identifies which services and applications generated activity on the XRP Ledger. An increase suggests more platforms are operating on the network. XRPL validator Vet said in a post on X, formerly Twitter, that source tag transactions rose as more applications and services integrated into the ecosystem.

Daily figures also rebounded. After a notable drop in late June, transactions began rising steeply again from July 3 and later exceeded 80,000 a day several times. On July 10, daily tag transactions climbed to 120,000, one of the highest levels on the chart.

Network participation also expanded. The daily average number of active source tags rose to 176, up 13 percent from the initial period of tracking. Vet noted that tag transactions and active source tags increased together. This is read as a sign that developers are deploying new applications and that those apps are drawing real use.

User inflows, however, did not translate into more new addresses. Weekly new wallets totalled 12,400, showing little change. Vet said the flat number of new wallets suggested existing users were becoming more active. This means the current rise in app usage has come from activity by already registered users rather than new addresses.

As a backdrop, some point to the ongoing "Let’s Ripple the XRPL" campaign run by XRPL Commons. The event is a three-month competitive program that began on June 22, rewarding developers who launch functioning apps on the XRP Ledger mainnet and secure active users and measurable on-chain activity. Total rewards are 50,000 XRP.

The program ends on Sept. 21. The top project selected by judges will receive 25,000 XRP, while the app with the most users and the project with the largest on-chain transaction volume will each get 5,000 XRP. A total of 1,000 XRP will be allocated to each of 15 projects that secure 300 active users. Vet mentioned that such a program could be one factor behind the recent increase in activity.

However, the link has not yet been confirmed. Because developer rewards are designed to align with actual app launches and user acquisition, it is clear the structure is intended to lift mainnet activity rather than simple testing.

Market fund flows, by contrast, showed a different picture. Despite rising app activity, XRP fell 6 percent over the same period, extending a weak trend. XRP is currently steady at $1.06.

In the end, the XRP Ledger is seeing improved developer and app usage indicators while large-scale fund movements and prices are simultaneously subdued. A key focus is whether rising app activity will lead to more new wallets before the reward program ends on Sept. 21, and whether increased on-chain usage will translate into a recovery in market trading.

Interesting increase in XRP Ledger Apps activity! 28.6% increase in source tag transactions and 13% more source tags on the XRP Ledger, basically more services went online on the XRP Ledger and are used. New wallets participating looks flat for now, tells me existing users are… pic.twitter.com/OCgOMRLwSA