xdcnetwork

XDC Network (XDC) recorded a modest 0.76% decline over the past 24 hours, yet its broader performance tells a more nuanced story. On the weekly timeframe, XDC has still managed to post a 6.13% gain, significantly outperforming Bitcoin (BTC), which declined by approximately 12% over the same period.
This relative strength suggests that XDC may still hold underlying potential, even as the broader crypto market struggles with heightened volatility and weak sentiment. However, a closer examination of on-chain activity and network fundamentals raises questions about the sustainability of this performance.
Lack of Strong Catalysts Despite Price Resilience
At present, there are no clear short-term catalysts originating directly from the XDC ecosystem that would convincingly justify a sustained upward price trend. Recent network activity has remained relatively muted, with limited growth in user engagement or application adoption.
A recent report by Coinphoton highlighted XDC as one of several high-market-cap blockchain networks with comparatively low active user participation. Despite maintaining a market capitalization of approximately $706 million, XDC’s daily active users have declined by an estimated 84% since 2021, currently hovering around 45,000 users.
This sharp contraction in activity suggests weakening organic demand, largely driven by the absence of compelling on-chain applications that can consistently attract and retain users.
Trading Volume Signals Cooling Market Conditions
Data from CryptoQuant further supports the view that market activity surrounding XDC is entering a cooling phase. The spot volume bubble map indicates a clear reduction in trading volume, reflecting lower speculative interest.
Unlike overheated conditions typically observed near market tops, this cooling phase may point to a period of stabilization rather than exhaustion. However, reduced volume alone does not necessarily confirm that XDC has established a definitive price bottom.
Adding to this mixed outlook, the Spot Taker Cumulative Volume Delta (CVD) has shifted into a neutral state over the past three weeks. This follows an extended period of dominant sell-side pressure that began in October. While this transition could be interpreted as a constructive signal—indicating that selling pressure is easing—it remains too early to conclude that buyers have fully regained control.
Infrastructure Upgrades and RWA Milestones Support Long-Term Vision
Despite near-term uncertainties, XDC Network has made several meaningful long-term advancements. On January 30, the network successfully implemented a hard fork upgrade, strengthening its core infrastructure and improving support for real-world asset (RWA) tokenization.
A major milestone followed in April 2025, when XDC announced a strategic partnership with Liqi Digital Assets, a well-established fintech firm in Brazil. The collaboration focuses on advancing RWA tokenization, decentralized finance (DeFi), cross-border payments, and trade finance solutions.
To date, the partnership has successfully facilitated the tokenization of $100 million worth of real-world assets on the XDC Network. Looking ahead to 2026, XDC and Liqi aim to scale this figure to $500 million, reinforcing the viability of blockchain-based solutions for debt and credit management.
In parallel, XDC’s collaboration with VERT Capital, another Brazil-based financial firm, highlights the network’s strategic emphasis on enterprise and institutional use cases, rather than retail-driven speculation. This partnership targets the tokenization of up to $1 billion in debt instruments and receivables, signaling strong ambitions within the corporate finance sector.
Price Outlook and Long-Term Considerations
At the time of writing, XDC is trading near $0.037. However, the prevailing downward trend suggests that the token may revisit a key support zone around $0.022 in the coming weeks. This level has historically acted as a strong demand area and has remained intact since June 2022.
Should XDC retest the $0.022–$0.023 range, the market may enter a prolonged accumulation phase, potentially forming a trading range below $0.03. If such a structure develops, long-term participants may begin to evaluate positioning opportunities based on fundamentals rather than short-term momentum.
Final Thoughts
XDC Network’s long-term strategy remains firmly centered on enterprise adoption and real-world asset tokenization. While short-term price action may face additional downside pressure, ongoing infrastructure upgrades and institutional partnerships provide a foundation for future growth—provided network usage and demand eventually recover.
As always, patience and careful risk assessment remain essential in an evolving market environment.
Disclaimer:
This article is for informational purposes only and reflects a personal blog-style analysis. It does not constitute financial or investment advice. Readers should conduct their own research before making any investment decisions. The author assumes no responsibility for any financial outcomes.
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