XRP New Wallets Down 85%, Active Supply Shrinking — Here’s What Analysts Think Comes Next

• Advertisement -

• New daily addresses on XRP have dropped by over 80% from a December 2024 high of 18,000 to around 2,700, Glassnode data shows.

• The XRP price remains under pressure at short-term levels, as data shows that active tokens on the network have also dipped 73% to 2 billion per day.

New data from Glassnode has revealed that activity on the XRP network has taken a massive hit in the past 18 months. The blockchain analytics company revealed that the number of new daily addresses on the XRP Ledger (XRPL) has dipped 85% to 2,700. At its peak, the network was recording 18,000 new addresses daily.

New addresses are a key metric for any blockchain network as they reveal how many new participants are joining the network. When this number rises, others follow suit, including capital injection, users of ecosystem apps and social sentiment. This metric has previously proven unshaken by price movements and kept rising even during the bear market.

A drastic drop, like with XRPL, shows that retail activity is declining and that short-term speculation is fading.

XRPL new addresses per day | Source: Glassnode

Glassnode data also shows a drop in XRP’s monthly active supply, which has dropped from about 7.45 billion XRP at its peak to nearly 2 billion tokens now. This indicates that fewer tokens are moving across the network each day, even as the wider XRPL network continues to maintain a large base of existing accounts.

**XRP Remains Under Pressure **

Lower network activity affects how traders and analysts interpret the market. Some now expect bears to take hold of the market, claiming that the recent declining figures stem from weak demand from short-term speculators or traders holding their positions longer due to a drop in short-term volatility.

Dwindling active supply also suggests that fewer XRP holders are moving the token across the network. Analysts say that this is due to traders moving to the sidelines and holders withdrawing their tokens from exchanges as the market waits for a stronger price signal. It could also be from weaker capital injection into XRP as investors target high-flying sectors, including AI-linked tokens and memecoins.

Even with weaker address growth, institutional activity remains part of the wider XRP discussion. Recent market data shows spot XRP ETF holdings have increased, attracting about 1.26% of the total XRP supply. Institutional ownership has now hit $1.1 billion after $110 million in ETF inflows for April and May.

We recently covered GraniteShares’ plan to launch its 3x leveraged XRP ETFs. The proposed funds would offer daily 3x long and short exposure to XRP through derivatives, rather than direct XRP holdings.

XRP price traded near $1.38 after falling about 2.03% on the day. The token remains under pressure near short-term levels, with the 50-day moving average around $1.38 and the 200-day moving average near** $1.77**.

Analyst Ali Martinez identified $1.45 as the main breakout level for XRP. A daily close above that area could open a move toward $1.80, while failure to clear it may keep the token inside the $1.36 to $1.43 range. A break below $1.36 would weaken the short-term setup.