XRP: a fall in activity of 65 % of the network that worries Crypto investors

The sudden calm which falls on a network as active as the XRP is never trivial. After a dazzling rally at the end of 2024, Ripple's blockchain experienced a tumble of its activity. This 65 % withdrawal in a few weeks is not just a simple adjustment. It reveals a disturbing loss of speed and challenges the solidity of the market. Behind the figures, it is a whole speculative dynamic that seems to falter.

The sudden fall in network activity: net market cooling

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

This sudden fall marks a clear break with the euphoria period observed between November 2024 and mid-January 2025, where network activity had jumped by 432.6 %, carried by a wave of speculative optimism. Indeed, this period “followed a cycle of intense speculative interest” motivated by anticipation “of a pro-Crypto presidency” capable of promoting Ripple.

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

• A drop in network activity: from 63,389 to 22,859 active addresses in 10 weeks;
• The end of the euphoric phase: network engagement had experienced a peak during the announcement of favorable political prospects, before gradually collapsing;
• A deterioration of the Realized Profit/Loss: this ratio, in constant decrease since January, reflects an increase in sales at a loss and a scarcity of profits;
• The weakening of the market feeling: this data suggests that many investors are now losing, with a higher purchase cost at the current price, which can cause a climate of latent nervousness.

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

A weakened market structure and latent tensions

Beyond the fall in activity, another indicator deserves attention: the invested capital detention structure. After Glassnode datathe capitalization made of the XRP jumped from 30.1 to 64.2 billion dollars in the space of six months.

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

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

This could supply cascade sales movements, which would accelerate price reductions and exacerbate volatility. Such a phenomenon is all the more likely since these new entrants are, for the most part, private investors, less experienced and more reactive in the face of fear or frustration.

The implications of this dynamic are multiple. First, the XRP market becomes mechanically more unstable, because it is based on a low -resilience crypto investors. Then, any attempt at recovery could be hampered by persistent selling pressure, because current holders would seek to disengage without loss. Finally, this situation challenges the sustainability of the Ripple network growth model. Without solid fundamentals or concrete adoption, a return to stability might require much more than a simple technical rebound.