According to analytics platform Santiment, the XRP network continues to expand with more wallets, unlike Bitcoin, where a decrease is observed.
Bitcoin's Declining Activity
Chris Kuiper, director of research at Fidelity's crypto arm, attributes the recent sharp decline in Bitcoin's on-chain activity to the growing influence of Bitcoin exchange-traded funds (ETFs). This trend reduces the need for transferring bitcoins between various parties on the blockchain, which also explains the practically empty mempool.
Positive Signs for XRP
Santiment attributes the recent decline in Bitcoin's network activity to smaller players leaving the market. 'Historically, these declines in retail belief are a positive sign for mid to long-term price performances,' the firm noted. In such cases, large investors typically buy coins dropped by smaller participants, subsequently driving up market prices.
Current Bitcoin Price Situation
Bitcoin remains below the $100,000 mark, trading at $96,008 according to CoinGecko. The recent dip was caused by underwhelming U.S. inflation data, resulting in Bitcoin ETFs recording an outflow of $251 million.
While XRP continues to strengthen its position through network growth, Bitcoin faces challenges brought on by new financial products and varying market conditions.
