XRP News Today: Ripple Locks 400 Million XRP Amid Declining User Activity

Ripple recently executed a significant token reshuffle, locking 400 million XRP (valued at over $869 million) into escrow while simultaneously receiving 500 million XRP from unknown wallets. This coordinated movement has sparked speculation about Ripple's intentions, with some suggesting it could be preparing for a liquidation event or simply rearranging its reserves.

On-chain data indicates a significant decline in user activity and adoption for XRP. The Transaction Count dropped to 249K, a notable decrease from previous highs, and Network Growth slowed sharply, with only 1,022 new addresses created recently. This decline suggests waning interest among retail users, despite Ripple's massive token shuffles.

The NVT Ratio for XRP has dropped to 136, which might initially seem bullish. However, this decrease is not due to rising utility but rather a drop in market cap, which artificially deflates the ratio. This divergence highlights deeper structural weaknesses in XRP’s on-chain activity, and investors should be cautious in interpreting NVT as a bullish indicator during periods of broad usage decline.

There are signs of increased short-term trading activity, as indicated by a small rise in the 1-day to 7-day band of the Realized Cap HODL Waves. However, long-term waves remain relatively flat, suggesting that while speculative trading may be returning, it lacks deeper investor conviction.

Exchange Reserves for XRP declined by 1.71% to $6.24 billion, suggesting that supply is moving off exchanges. However, the 500 million XRP inflow to Ripple from unknown wallets complicates this interpretation. It raises questions about whether Ripple is offloading tokens behind the scenes or preparing for redistribution, casting doubt on the holding narrative.

In the derivatives market, XRP’s volume declined nearly 30%, while Open Interest dropped 3.65%, signaling reduced exposure. Options Volume plunged by 45.55% despite a minor 5.74% increase in Options Open Interest. These metrics reveal that traders are becoming less active in XRP derivatives, possibly due to ongoing price stagnation and weak fundamentals. Lower market participation from leveraged traders often translates to lower volatility but also signals fading enthusiasm.

Ripple’s token moves appear deliberate, but they have failed to revive activity. With weak fundamentals and fading demand, XRP’s outlook remains uncertain. The recent token reshuffle and declining user activity suggest that Ripple may be facing challenges in maintaining confidence in XRP’s rebound. The lack of visible uptick in user interest and the decline in derivatives activity further highlight the fragile state of XRP’s market position.