XRP network activity collapses 65%

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After staging one of the strongest rallies of the current bull market, XRP is now showing signs of a slowdown, with on-chain data revealing a sharp 65% drop in daily active addresses.

From a peak of 63,389 active addresses on January 16, 2025, XRP’s active addresses have fallen drastically to just 22,859 as of April 3, marking a substantial contraction in activity.

This collapse in network engagement follows a period of intense speculative interest between November 7, 2024, and mid-January 2025, when XRP surged over 485%.

The bullish sentiment at the time was largely driven by investor hopes that a pro-crypto presidency could benefit Ripple and its ecosystem. During that window, daily active addresses spiked by over 432.6%.

XRP’s retail-driven rally loses steam

However, what followed was a classic example of short-term speculation outpacing sustainable demand. Realized capitalization jumped from $30.1 billion to $64.2 billion, with nearly $30 billion of that growth attributed to capital deployed within just six months, according to data from Glassnode.

This rapid inflow concentrated wealth in the hands of new holders, with over 62.8% of XRP’s realized cap now belonging to investors who entered during that narrow timeframe.

When viewed together with the heavy retail participation, this sharp increase in new holders raises caution signs, as many investors are likely vulnerable to downside volatility given their now elevated cost basis.

As enthusiasm cooled off in late February, signs of a retreating speculative wave became apparent. The Realized Profit/Loss ratio has been declining since January, indicating more frequent losses being realized and fewer profits taken, often a precursor to deteriorating market confidence.

When combined with the steep decline in network activity, it suggests that many of these new holders are now underwater, increasing the risk of panic-driven exits.

Amid broader market jitters triggered by President Donald Trump’s sweeping global tariffs, XRP briefly dipped below the key psychological $2 mark. However, it has since bounced back, gaining 5% intraday and currently trading at $2.13 at press time.

Featured image via Shutterstock

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