An analysis of XRP's network metrics indicates a decline in user activity despite the token's stable price. This may signal upcoming market changes.
Decline in New Address Growth
Growth in new addresses is one of the clearest indicators of user interest. When it slows down, it often indicates that fewer new participants are entering the ecosystem. This trend suggests that both retail and perhaps institutional interest in XRP is cooling off, even as its price stabilizes around the $2 mark.
Drop in Active Wallets
Data from Crypto Uncle shows that the number of daily active addresses has dropped from 577,000 to just 34,000. This sharp decline indicates that many XRP holders are either sitting on their assets or have exited the network entirely. Fewer active users typically lead to lower transaction volumes, slower ecosystem activity, and reduced demand.
Warning Signs for XRP
The fact that XRP has remained within the $2 to $2.30 range while usage metrics drop rapidly is concerning. This creates a bearish divergence between on-chain fundamentals and market price. Historically, such occurrences indicate that price tends to follow network dynamics. Clearly, these declining trends in wallet growth and user activity suggest an impending slowdown in momentum unless a new catalyst emerges.
While XRP's price appears stable on the surface, the underlying foundations are weakening. If activity does not pick back up soon, it may be difficult for the price to maintain current levels.
