Why XRP's Long-Term Holder Base Makes It a Bear Market Outperformer

In the volatile world of cryptocurrency, bear markets test the mettle of both assets and their investor bases. While many digital assets crumble under prolonged downward pressure, XRP has consistently demonstrated resilience, outperforming peers like Bitcoin and Ethereum during recent downturns. This durability stems from a unique structural advantage: its long-term holder base. With over 60% of XRP's circulating supply held in dormant addresses for more than a year, according to Coinotag, the asset benefits from a committed core of investors who act as a stabilizing force during market stress. This contrasts sharply with the more speculative dynamics observed in other major cryptocurrencies, positioning XRP as a standout in bear market conditions.

Structural Resilience: XRP's Long-Term Holder Base

XRP's long-term holder retention rates highlight its structural resilience. According to on-chain analytics reported by Coinotag, the average holding period for XRP exceeds 200 days-a figure notably higher than many altcoins. DonAlt, a prominent crypto analyst, attributes this resilience to XRP's role in global financial infrastructure, stating that its value proposition lies in facilitating cross-border payments and liquidity rather than short-term price swings (DonAlt).

However, this stability is not without challenges. Recent data reported by Coinotag reveals a 580% surge in spending by long-term holders since November 2024, indicating some profit-taking amid market pressures. Despite this, the sheer size of XRP's dormant supply-over 60% of the total-creates a natural floor for sell pressure. In contrast, Bitcoin's long-term holder base, while robust, accounts for only 45% of the circulating supply (held for three years or more), according to CoinDesk, and Ethereum's profitability metric hit a bear market low of 46% in late 2023, as reported by Bitcoinist. These figures underscore XRP's superior retention rates and the relative stability of its holder base during downturns.

Institutional Accumulation and Retail Rebound

XRP's resilience is further bolstered by institutional and retail dynamics. While large holders-often referred to as "whales"-have sold over $300 million worth of XRP in recent months, according to BeInCrypto, institutional investors have steadily increased their stakes. Whale addresses holding between 1 million and 10 million XRP have grown their share of the total supply from 12.16% to 12.65% in a short period, as reported by FXStreet, signaling confidence in XRP's long-term utility. This institutional accumulation contrasts with the bearish behavior of Ethereum whales, who liquidated $32 million in ETH during the same period, per Yahoo Finance, reflecting divergent investor sentiment.

Retail interest is also showing signs of recovery. The futures Open Interest (OI)-weighted funding rate for XRP has risen to 0.0042% from a low of -0.2040% in early October, as noted by FXStreet, indicating a shift toward risk-on sentiment. This contrasts with Ethereum's lukewarm retail engagement, where futures Open Interest dropped by nearly 5% in a single day. These metrics suggest that both institutional and retail investors are beginning to view XRP as a more attractive proposition in a bear market, driven by its infrastructure-focused narrative and regulatory progress.

ETF Catalysts and Market Dynamics

The potential approval of XRP ETFs represents a critical catalyst for the asset's structural resilience. Ripple CEO Brad Garlinghouse has emphasized XRP's role as a "connector" in the global financial system, a narrative covered in Coinotag's piece on his comments (Garlinghouse), which aligns with the growing demand for infrastructure-oriented crypto assets. With Bitwise, VanEck, and Canary submitting updated S-1 applications to the SEC-also noted in that coverage-the path to spot XRP ETFs appears increasingly viable. This development mirrors the success of Solana ETFs, which attracted $417 million in first-week inflows, as discussed in the same Coinotag coverage, suggesting a template for XRP's institutional adoption.

Comparatively, Bitcoin and Ethereum ETFs have already attracted over $75 billion in cumulative inflows by September 2025, according to research from Yellow, demonstrating the transformative impact of such products (Yellow). While XRP's ETF journey is still unfolding, its unique value proposition-rooted in long-term holder retention and institutional accumulation-positions it to replicate this success. As ETFs generate systematic buying pressure, they could further stabilize XRP's price during downturns, reducing volatility clustering and enhancing liquidity.

Conclusion: A Unique Bear Market Play

XRP's long-term holder base, combined with its institutional and retail dynamics, creates a compelling case for its outperformance in bear markets. While Bitcoin and Ethereum face challenges from speculative trading and macroeconomic headwinds, XRP's structural advantages-rooted in committed holders and infrastructure utility-offer a counterbalance. As the crypto market navigates ongoing volatility, XRP's resilience underscores its potential as a defensive asset in a downturn. With regulatory clarity and ETF momentum on the horizon, the stage is set for XRP to solidify its position as a bear market outperformer.