Ripple-backed network XRP Ledger (XRPL) is experiencing a surge in network activity described as a distributed denial-of-service (DDOS) attack by Magnetic X, a decentralized exchange based on the network.

According to the DEX, the network has been hit with a massive spike in daily transactions from hundreds of accounts, disrupting its functionality and impeding its speed. Notably, since Dec. 28, the network has seen an average of 5 million transactions and the attackers are burning as much as 5000 XRP in network fees daily.

“[The attacker] strategy is simple: hundreds (maybe thousands) of different wallets are sending 0.000001 XRP to this wallet: rxRpSNb1VktvzBz8JF2oJC6qaww6RZ7Lw. It is unclear what their motive is. Whether Ripple themselves are testing their blockchain or ill-wishers decided to bring down the network,” Magnetic X added.

A look at the wallet on the XRP blockchain explorer platform Bithomp showed that it has been tagged as fraudulent, and the wallet continues to receive XRP deposits. The wallet holds over 11,000 units of XRP worth around $6400 as of press time.

However, Mayukha Vadari, a Senior Software Developer at XRPL, countered the perception of an attack. He said the surge resulted from increased and potentially fraudulent inscription trading activity within the network.

“There’s a (somewhat scammy) project selling inscriptions on the XRPL and their website creates a bunch of new accounts for each person so they can spam more.,” he explained.

Meanwhile, XRPScan data confirms that the network is witnessing an upsurge in its activity, with Ledger surpassing 5 million active accounts earlier today.

Nodes impacted

The continued “attack” adversely impacted Magnetic X’s nodes on Jan. 6, causing them to overload and slow down.

Consequently, certain applications on the platform experienced disruptions in accessing transaction histories and network updates.

“We have been diligently working on optimizing the code, adjusting node configurations, and procuring additional resources. The problem has now been resolved,” it added.

Nevertheless, the exchange highlighted the potential ramifications for network users and developers, foreseeing slower node operations and increased network fees due to the attack.

Magnetic X further raised concerns about the XRP Ledger’s ability to manage substantial transaction volumes. It said:

“If issues like these arise at 60-70 tx/s, what will happen at 1500 tx/s? While very powerful validator and blockchain explorer nodes will likely withstand such a load, what will happen to public nodes or nodes with limited capacities (due to the owners’ inability to afford them)?”