XRP Faces 65% Drop In Network Activity: A Signal For Concern?

The sudden calm that falls on a network as active as XRP is never insignificant. After a spectacular rally at the end of 2024, Ripple’s blockchain is experiencing a steep decline in its activity. This retreat of 65% in just a few weeks is not merely a simple adjustment. It reveals a worrying loss of momentum and raises concerns about the market’s solidity. Behind the numbers, it is an entire speculative dynamic that seems to be faltering.

The Brutal Decline in Network Activity: A Clear Cooling of the Market

On January 16, 2025, the XRP network recorded 63,389 active addresses in a single day, according to data from CryptoQuant. Barely two and a half months later, on April 3, this figure had dropped to 22,859 addresses, marking a spectacular decline of 65%.

This sudden drop marks a sharp break with the euphoric period observed between November 2024 and mid-January 2025, where network activity had surged by 432.6%, driven by a wave of speculative optimism. Indeed, this period “followed a cycle of intense speculative interest” motivated by the anticipation “of a pro-crypto presidency” likely to favor Ripple.

The signals of cooling are multiple and converging. Here are the main ones:

• A decline in network activity: from 63,389 to 22,859 active addresses in 10 weeks.
• The end of the euphoric phase: network engagement peaked when favorable political outlooks were announced, before gradually collapsing.
• A deterioration in Realized Profit/Loss: this ratio, which has been in constant decline since January, reflects an increase in loss sales and a scarcity of profit-taking.
• The weakening of market sentiment: these data suggest that many investors are now at a loss, with a purchase cost exceeding the current price, which may create a climate of latent nervousness.

This decrease in on-chain activity reveals a widespread retreat of interest in XRP in the short term. It is not solely explained by external factors, but also by the internal structure of the market itself, which seems to have been overheated during the year-end rally.

A Fragile Market Structure and Latent Tensions

Beyond the drop in activity, another indicator deserves attention: the structure of capital investment. According to data from Glassnode, the realized capitalization of XRP surged from $30.1 billion to $64.2 billion in just six months.

However, more than 62.8% of this capitalization is now held by investors who bought their XRP crypto during this narrow window of speculation between November 2024 and January 2025. In other words, a majority of current holders have invested at relatively high price levels.

This recent concentration of wealth creates a risk of fragility. In the event of a prolonged correction or a sudden drop in price, these investors, having a high average purchase cost, are likely to liquidate their positions quickly.

This could fuel cascading sell-offs, which would accelerate price declines and exacerbate volatility. Such a phenomenon is even more likely as these new entrants are mostly individual investors, less experienced and more reactive to fear or frustration.

The implications of this dynamic are numerous. Firstly, the XRP market becomes mechanically more unstable, as it relies on a base of crypto investors with low resilience. Secondly, any attempt at recovery could be hampered by persistent selling pressure, as current holders look to disengage without loss. Finally, this situation raises questions about the sustainability of Ripple‘s growth model. Without solid fundamentals or concrete adoption, a return to stability could require much more than a simple technical rebound.