XRP Navigates Complex Market Landscape Amidst Significant Capital Inflows and Waning Network Activity

XRP, the cryptocurrency associated with Ripple Labs, is currently navigating a complex market landscape characterized by significant capital inflows and waning network activity.

XRP, the cryptocurrency developed by Ripple Labs, is currently navigating a complex market landscape.

Monday evening saw XRP trading at approximately $2.31, reflecting a 0.021% decrease from the previous close.

Recent on-chain data from Glassnode reveals that over 70% of XRP’s realized market capitalization has been accumulated within the past six months.

A substantial portion of this influx occurred during the token’s peak price period between December 2024 and January 2025. This suggests that a majority of investors may have entered the market at higher price points, potentially setting the stage for a market correction if prices decline further.

The time frame for this capital accumulation is also noteworthy. As pointed out by blockchain analytics firm DeCrypt, the last time such a significant portion of Bitcoin’s (BTC) market cap was accumulated in a six-month period was during the 2017 bull market top.

“This is an observation that usually comes up in conjunction with a market top, as newer investors, more sensitive to price changes, tend to trigger larger sell-offs during corrections.”

This pattern, if it continues with XRP, could have implications for the token’s price stability.

Further highlighting the potential for market imbalances, the number of active addresses on the XRP Ledger has plummejit by over 90% since its peak in March 2025.

This sharp decrease in user activity, despite the influx of new capital, suggests that overall participation in the XRP network is waning, which could undermine the token’s price stability and growth prospects.

As Ripple Labs faces market challenges, it is actively pursuing initiatives to enhance XRP’s utility and adoption.

In collaboration with the Dubai Land Department and tokenization platform Ctrl Alt, Ripple is launching a government-backed real estate tokenization initiative on the XRP Ledger. This project will enable fractional ownership of real estate, fully compliant with local laws, through direct integration with Dubai’s traditional property registration systems.

This initiative aims to demonstrate XRP’s tangible applications and counter criticisms that Ripple is merely leveraging the token for fundraising purposes. However, despite these efforts, the sustained decline in active addresses and the new investors entering at higher prices might indicate that a market top has been reached.