XRP's Retail Surge Outpaces Bitcoin's Bearish Trend

On-chain data analytics firm Glassnode has identified a significant shift in retail investor preference, with XRP emerging as a focal point of speculative interest. The findings, detailed in Glassnode’s report titled “Rippling Away,” reveal that while Bitcoin market indicators suggest a bearish trend, XRP has experienced substantial capital inflows and user activity, although with signs of diminishing momentum.

Bitcoin has been consolidating within the $76,000 to $87,000 price range. Indicators such as the Realized Profit/Loss Ratio show signs of near-term seller exhaustion but do not indicate a renewal of sustained bullish momentum. Additionally, a longer-term on-chain “Death-Cross” suggests that the market’s current weakness could persist. The report notes that “Supply in loss remains elevated at 4.7M BTC,” highlighting the depth of investor stress and painting a picture of deepening bearish conditions for the leading cryptocurrency.

In contrast, XRP has become a preferred asset for retail investors, serving as a proxy for measuring retail speculative demand. From the 2022 cycle low, XRP’s daily active addresses have increased by 490% on a quarterly average basis, while Bitcoin’s rose by only 10%. This sharp divergence underscores the retail community’s enthusiasm for XRP, which Glassnode views as indicative of broader speculative appetite in the market.

The enthusiasm for XRP translated into a near-doubling of its Realized Cap, leaping from $30.1 billion to $64.2 billion during its rally from December 2024 to early 2025. Glassnode estimates that approximately $30 billion of this new capital came in over the last six months, pointing to a fresh wave of market participants. However, the report also warns of a rapid concentration of wealth in the hands of new investors, raising caution signs due to their vulnerability to downside volatility, especially as XRP’s cost basis becomes more top-heavy.

Glassnode’s Realized Loss/Profit Ratio for XRP has declined steadily since January 2025, suggesting a slip in profitability and waning confidence. This might reflect a more fragile market structure, where large swaths of relatively new holders face mounting paper losses. The report adds that the XRP market is showing signs of a top-heavy structure, with many investors caught on a relatively high-cost basis. This fragility in XRP’s positioning could also imply broader caution for retail-driven altcoin markets.

Overall, Glassnode’s latest research underscores the dichotomy in today’s digital asset landscape. While Bitcoin’s drift below $80,000 spurred increased losses for long-term holders, XRP’s meteoric rise and subsequent slowdown depict a market driven by short-term retail enthusiasm that may be approaching saturation. The report concludes that for more speculative assets like XRP, demand may have already peaked, suggesting caution may be warranted until signs of a robust recovery start to emerge.