Glassnode: XRP Active Addresses Increase By Over 490% Since 2022 Cycle Low, Indicating Speculative Retail Demand
In Brief
Since the 2022 cycle low, XRP has experienced a 490% increase in active addresses, signaling strong retail demand, with its price surge driven by short-term retail speculation.
Cryptocurrency market analytics firm Glassnode released its latest analysis, noting that Ripple (XRP) has become a favorite asset among retail investors in this market cycle, diverging from Bitcoin’s more institutional-driven rally.
According to Glassnode, XRP has gained traction among retail traders, and its behavior can now be used as an indicator of retail speculative demand. Since the 2022 market low, XRP’s quarterly average of daily active addresses has increased by 490%, while Bitcoin’s growth in this regard has been only 10%. This stark contrast points to a surge of retail interest in XRP, reflecting the broader speculative activity in the cryptocurrency market.
The differences in the price trajectories of Bitcoin and XRP since the 2022 cycle low further emphasize this trend. While both assets have appreciated around 5x to 6x from the bottom, their paths have been fundamentally different. Bitcoin‘s rally has been more organic and gradual, with steady growth interspersed with significant spikes triggered by events such as the launch of spot exchange-traded funds (ETFs) and key political developments like the US elections. On the other hand, XRP’s price remained relatively stable until December 2024, at which point it experienced a sharp upward movement, a pattern more closely associated with retail-driven speculation rather than a sustained and structured increase in demand.
XRP’s Recent Capital Surge Shows Signs Of Cooling, Retail-Driven Rally Slows
During the recent surge, XRP’s Realized Capitalization nearly doubled from $30.1 billion to $64.2 billion, indicating a large influx of capital. A noteworthy portion of this increase, nearly $30 billion, came from investors who deployed capital within the past six months, reflecting the short-term nature of this retail-driven rally. However, since late February 2025, the pace of this capital influx has started to slow, signaling a potential decline in speculative demand.
Alongside the fast increase in capital flows, there has been a notable concentration of wealth among new investors, with the share of XRP’s realized capitalization from assets held for less than six months rising from 23% to 62.8% in a short period. This, combined with the high retail participation, raises concerns about the vulnerability of these new investors to potential price declines, as their cost basis has increased.
This scenario resembles a top-heavy cost structure, which is further concerning when looking at the Realized Loss/Profit Ratio for XRP. This metric has been steadily declining since January 2025, indicating that investors are realizing fewer profits and increasingly taking larger losses. These factors are typical indicators of a loss of confidence and a shift toward more fragile, higher-risk market conditions. Given the dominance of retail-driven inflows and the concentration of wealth in relatively new holders, these conditions suggest that retail confidence in XRP may be diminishing, potentially reflecting broader market sentiment, according to analysts.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
