XRP's Active Addresses Surge 490% Driven by Retail Speculation

Coin WorldThursday, Apr 3, 2025 11:42 am ET
1min read

XRP has seen a significant increase in active addresses, rising by 490% since the 2022 cycle low, while Bitcoin's active addresses have only increased by 10% over the same period. This disparity suggests that XRP's recent rally is primarily driven by retail speculation, whereas Bitcoin's growth is more stable and institutional-led.

Glassnode's analysis indicates that Bitcoin's price growth has been steady, supported by institutional investments and ETF inflows. In contrast, XRP remained largely dormant before experiencing a sharp speculative breakout in December 2024. Despite both cryptocurrencies experiencing similar price gains since the cycle low, their rally paths differ significantly. Bitcoin shows steady, catalyst-driven growth, while XRP's rise is largely speculative.

XRP's recent price surge brought a rapid influx of new capital, with its Realized Cap nearly doubling from $30.1 billion to $64.2 billion. However, this momentum has reportedly slowed since late February 2025, indicating a potential cooling in retail speculation. The concentration of wealth in newer investors also increased significantly, with the share of XRP’s realized cap held by addresses younger than six months jumping from 23% to 62.8%. This creates a potentially top-heavy market structure vulnerable to downside volatility.

Glassnode also reported that XRP’s Realized Profit/Loss Ratio has steadily declined since January 2025, suggesting fewer investors are realizing profits while more are locking in losses. Such conditions often precede downturns as confidence weakens. The Market Value to Realized Value (MVRV) ratio for XRP’s supply held at a loss registered 0.88, signaling moderate investor stress. While not as severe as past bear market lows, it raises concerns about future price stability.

While XRP’s growth highlights retail appeal, the sustainability of this rally remains uncertain based on Glassnode’s analysis. The lack of sustained adoption evidence and reliance on retail speculation raise concerns about long-term price stability. If the surge in new addresses doesn’t translate into broader real-world usage or increased on-chain activity beyond trading, XRP could face sharp selling pressure.

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