XRP News Today: XRP Network Activity Drops 80% as New Addresses Plummet

XRP, a prominent digital asset, has recently encountered substantial challenges, as indicated by bearish on-chain metrics. The number of new addresses on the XRP Ledger has experienced a dramatic decline, dropping by 80% from January to June 2025. This decrease, from over 30,000 new addresses daily to below 5,000, signals a significant reduction in network activity and suggests waning retail investor interest in the XRP ecosystem. This trend could potentially impede XRP's ability to regain bullish momentum.

The correlation between price action and network growth is evident in the data. The surge in wallet creation during late Q4 2024 coincided with a parabolic price increase, pushing XRP to trade as high as $2.71. However, as the rate of new users entering the network began to decline, XRP’s price action entered a consolidation and gradual downward trend. This trend is further supported by the significant drop in daily active addresses, which fell from 557,000 to 34,000, indicating a lack of market demand to support a bullish climb towards the $3 price region.

Analysts have presented varying theories to explain this decline. Some attribute it to a lack of market demand, while others suggest that the previous highs in network activity were driven by widespread market greed following the US general elections. According to the latter theory, the decline is a normal correction alongside social trends and is overemphasized by some analysts.

Despite the bearish outlook, some analysts remain optimistic about XRP’s long-term prospects. According to the analyst's forecast, XRP is expected to remain in consolidation for the short term but could see a steady bullish revival in the long term, with projections of $2.45 in three months and $3.03 in six months. However, these forecasts should be taken with caution, as they are based on predictions and not actual market data.

The current market price of XRP is around $2.13, reflecting a 1.33% decline in the past day. The Fear & Greed Index stands neutral at 54, indicating a mixed sentiment among investors. The decline in network activity and the bearish on-chain metrics raise concerns about XRP’s ability to regain its bullish form in the near future. Investors and analysts will be closely monitoring these developments to gauge the future direction of the XRP market.