XRP Ledger Suffers Hourlong Network Halt Before Recovery: What Happened?

On February 4, the XRP Ledger (XRPL) experienced an unexpected halt in block production, marking a rare disruption for one of the industry’s oldest blockchain networks. The halt lasted for approximately 64 minutes, freezing network activity at block height 93927174. Ripple’s chief technology officer, David Schwartz, confirmed the event and stated that the company is investigating the root cause of the issue.

• The XRP Ledger network stopped processing transactions for 64 minutes before recovering on Feb. 4.

• Ripple CTO David Schwartz cited potential validation issues that caused network drift.

• Despite the disruption, customer funds remained safe. Critics pointed out the reliance on a small number of validators.

• XRP briefly dropped to $2.45 but recovered to $2.53 following the incident.

• A 1 billion XRP transfer to Ripple has fueled speculation about its future market impact.

According to Schwartz, the consensus mechanism continued running, but validations were not being published. This caused the network to drift apart, ultimately requiring manual intervention from validator operators to restart the system.

Source: X

Ripple Addresses the Incident, Ensures Safety of Funds

RippleX, the development arm of XRP Ledger, reassured users that customer funds were not at risk during the halt. The network’s recovery was facilitated by a select group of validators adjusting their nodes to a common starting point, allowing consensus to be reestablished. Schwartz noted that very few Unique Node List (UNL) validators had to make changes, suggesting that the network may have recovered on its own.

Ripple’s Centralization Concerns Spark Debate

Following the network halt, discussions reignited regarding XRPL’s level of decentralization. Eminence CTO Daniel Keller highlighted that all 35 network validators resumed transactions simultaneously, raising concerns about the centralized nature of the system. Unlike Ethereum, which boasts over 1 million active validators, XRPL operates on a significantly smaller validator pool, leading some industry experts to question its resilience and trustworthiness.

XRP/USDT price chart | Source: KuCoin

The network disruption had a temporary impact on XRP’s price, which briefly fell to $2.45 before rebounding to $2.52. Despite the setback, XRP remains one of the top-performing cryptocurrencies, having surged 396% since November 2024, coinciding with Donald Trump’s U.S. election victory.

However, XRP’s price trajectory is facing challenges due to bearish technical signals. Analysts have identified a bearish divergence pattern on both daily and weekly charts, which could trigger a potential price drop to $2 or lower if buyers lose momentum.

Source: X

Adding to the uncertainty, a major XRP transaction was detected on February 2, 2025. Whale Alert, a blockchain tracking service, reported that Ripple received a staggering 430 million XRP, valued at over $1.2 billion. The service reported four transactions totaling 1 billion XRP tokens (430M, 300M, 200M, and 70M), which some XRP detractors cited as evidence of the token's close ties to Ripple Labs. This massive transfer has fueled speculation about Ripple’s strategic moves, including potential new partnerships or upcoming network upgrades. 

This was followed by additional whale movement of XRP into exchanges on February 4, 2025. 

Source: X

Meanwhile, regulatory concerns remain a key factor in XRP’s market outlook. The U.S. Securities and Exchange Commission (SEC) is still engaged in legal battles with Ripple, leaving investors wary of potential enforcement actions that could impact XRP’s long-term valuation.

The recent halt highlights both the strengths and vulnerabilities of XRP Ledger. While Ripple’s quick response and the safe recovery of funds showcase network resilience, the incident has renewed concerns about centralization and governance.

Investors will be closely monitoring Ripple’s next moves, including potential protocol updates to prevent similar incidents. Additionally, the outcome of the ongoing SEC case and regulatory clarity surrounding XRP will play a critical role in shaping its market future. Another key development to watch is the increasing push for spot XRP exchange-traded funds (ETFs) in major financial markets, which could drive institutional demand and enhance liquidity.

For now, XRP continues to trade above key support levels, but the coming weeks will determine whether its bullish momentum can be sustained in the face of growing market volatility and regulatory scrutiny. The potential approval of spot XRP ETFs could be a major catalyst for price movement, offering increased accessibility for traditional investors.