In a notable divergence from Bitcoin’s institutional-driven rally, XRP has emerged as a retail investor favorite, with active addresses skyrocketing by almost 500% over the past 3 years, according to recent data from crypto analytics firm Glassnode.
“XRP has emerged as a new retail favorite this cycle, diverging from Bitcoin’s more institutional-driven rally,” the firm tweeted Wednesday. “Since the 2022 cycle low, XRP active addresses are up +490%, while BTC has only seen a +10% increase – a sharp signal of speculative retail demand.”
This dramatic surge in XRP activity highlights a fundamental shift in the cryptocurrency landscape. Retail enthusiasm has increasingly gravitated toward alternative digital assets, while Bitcoin has been bolstered primarily by institutional investment through U.S. spot ETFs.
Notably, while both Bitcoin and XRP have delivered similar overall performance since 2022, each trading approximately 5 to 6 times above their cycle lows, their growth trajectories tell vastly different stories.
Bitcoin’s climb has followed a steadier path marked by strategic catalysts like the launch of spot ETFs and developments surrounding U.S. elections. In contrast, XRP traded sideways until November 2024 before experiencing an explosive upward surge of over 400%, behavior more characteristic of speculative retail interest.
As per the firm, this retail-driven momentum has translated into substantial capital inflows for XRP, with its Realized Cap nearly doubling from $30.1 billion to $64.2 billion.
“Close to $30B of this increase came from investors deploying capital within the last six months, highlighting the short concentration of this retail-led rally.” The firm noted.
Adding to XRP’s appeal is the newly launched RLUSD stablecoin, which has been integrated into Ripple’s payment systems to enhance cross-border transactions. According to Santiment analysts, RLUSD has experienced an 87% increase in adoption and has crossed $10 billion in trading volume on platforms like Kraken, further cementing institutional interest in Ripple’s infrastructure.
However, onchain data suggests that speculative enthusiasm around XRP may be fading. Since late February 2025, capital inflows into XRP have noticeably slowed, aligning with a shift in profit-taking behavior that raises red flags.
“Combined with high retail involvement, the rapid increase in new holders is a warning sign,” Glassnode noted. “Many of these investors are now exposed to downside volatility, given their elevated cost basis.”
That said, while Bitcoin consolidates above the $81,000–$85,000 demand zone following its correction from the $109,114 all-time high, XRP has also demonstrated resilience, rebounding above the key support level at $1.95.
Analysts forecast that a bullish breakout could push XRP above its all-time high. Conversely, a failure to hold support may trigger a 40% correction, completing a potential head-and-shoulders pattern.
