XRP Active Addresses Surge 490% Outpacing Bitcoin's 10% Growth

Recent on-chain data analysis has revealed a notable shift in retail investor preferences, with XRP emerging as the favored cryptocurrency over Bitcoin. The data from Glassnode indicates that the number of active addresses on the XRP Ledger (XRPL) has surged by 490% since its cycle low, whereas Bitcoin’s active address count has increased by just 10% over the same period. This disparity suggests a significant increase in engagement with the XRPL, which may be attributed to various factors, including rising adoption, new use cases, or speculation in anticipation of potential market developments.

The rapid growth in XRP’s active addresses suggests increased engagement with the XRPL. This may be attributed to various factors, including rising adoption, new use cases, or speculation in anticipation of potential market developments. The sentiment surrounding XRP has been notably positive among its supporters, with many pointing to increased on-chain activity as an indicator of long-term adoption. While the broader cryptocurrency market remains volatile, some analysts consider rising network activity a potential precursor to increased asset value.

The significant increase in active addresses on XRPL could suggest growing institutional or retail interest in the asset. The XRPL has been widely recognized for its efficiency in cross-border payments and decentralized finance applications. Its recent uptick in network engagement may signal expanding use cases or strategic partnerships that are yet to be fully realized. Despite maintaining its position as the dominant cryptocurrency by market capitalization, Bitcoin has not exhibited the same level of network growth as XRP in this timeframe. The contrast in activity changes raises questions about the evolving utility of different blockchain networks.

Ask Aime: Why is XRP experiencing significant growth in active addresses compared to Bitcoin?

According to the report, the realized capitalization of XRP has added $30 billion within the last six months, bringing the total to over $64 billion. This influx is primarily driven by two factors: the inclusion of XRP in the U.S. digital assets stockpile as per President Donald Trump’s executive order and the Securities and Exchange Commission (SEC) dropping the securities violations case against Ripple. However, the report cautions that XRP investors may be vulnerable to downside volatility as profit-taking seems to be waning.

The data underscores the growing retail interest in XRP, which is indicative of speculative retail demand. This trend is supported by the surge in active addresses, which has outpaced Bitcoin's growth by a significant margin. The price pattern of XRP, with its substantial surge in December 2024, further supports the notion of retail-driven speculation. The realized cap increase of $30 billion within the last six months highlights the new retail capital influx into XRP.

The analysis suggests that while XRP's price appreciation has been driven by retail investors, there are potential risks associated with this trend. The report warns that profit-taking may be waning, which could lead to increased downside volatility for XRP investors. Despite this caution, the data clearly shows a preference for XRP among retail investors, driven by factors such as regulatory developments and inclusion in digital asset stockpiles.