XRP Outpaces Bitcoin on Key Metric for the First Time in History

According to the latest data from the Santiment analytics platform, XRP is experiencing significant growth in its network, marked by a notable increase in the number of active wallets. This positive trend contrasts sharply with the situation of Bitcoin, which has lost more than 277,240 active wallets over the past three weeks.

A significant decline in Bitcoin wallets

Over the past three weeks, the Bitcoin network has recorded a notable decrease of 277,240 active wallets. This significant drop contrasts with the continuous growth observed on the XRP and Ethereum networks.

Chris Kuiper, research director of the crypto division at Fidelity, attributes this phenomenon to the growing influence of recently approved Bitcoin ETFs.

The explanation is simple: transactions that previously had to occur directly on the Bitcoin blockchain can now be done off-chain thanks to ETFs, which allow for settlement of transactions between different parties.

This evolution also explains why the Bitcoin mempool (the storage space where pending transactions are logged) remains particularly underused. However, according to Fidelity, this situation does not necessarily represent a danger for the overall health of the Bitcoin network.

XRP and Ethereum in constant growth

While Bitcoin is experiencing this decline in activity, XRP and Ethereum show encouraging signs of growth. Both networks are seeing their number of active wallets steadily increasing, demonstrating growing adoption and sustained activity on their respective blockchains.

This trend occurs in a broader context where Bitcoin struggles to maintain its price above $100,000. At the time of writing, the flagship crypto is trading at $96,108, affected in particular by disappointing inflation data in the United States. The Bitcoin ETFs have also faced difficulties, with outflows reaching $251 million in a single day.

However, according to analysts at Santiment, this period of withdrawal by small investors could paradoxically signal a positive outlook for prices in the medium to long term.

Historically, these phases of disengagement by retail traders are followed by accumulation by “whales” and “sharks” (large investors), who take advantage of this opportunity to acquire the neglected assets, thus creating the conditions for a future price increase. A perspective supported by Cathie Wood of ARK Invest, who anticipates a Bitcoin at $1.5 million by 2030.