Over 70% Of XRP Realized Cap Is Six Months Old Or Younger

On-chain data shows more than 70% of all capital stored in XRP came into the network alongside the high prices of the last six months.

On-chain data shows that more than 70% of the capital stored in XRP has come into the network alongside the high prices of the last six months. In a post on X, Glassnode senior researcher CryptoVizArt.₿ discussed the capital inflow situation related to XRP. The indicator of relevance here is the “Realized Cap,” which is a model that, in short, keeps track of the sum of the cost bases of all addresses on the network.

In other words, the indicator provides an estimate of the total amount of capital that the holders as a whole have invested into the cryptocurrency.

"The capital realized in XRP is in a precarious situation. Over 70% of the capital locked in XRP was deployed near the top over the past 6 months. It wouldn't take much for all of it to be in the red."

This is in stark contrast to BTC, for example, where the bulk of the Realized Cap is related to coin groups older than six months, which means that they are likely in the green despite the recent price decline.

The aggregated Realized Cap has seen its growth during the past six months, so it’s not surprising to see that the capital held by cohorts falling in this age range has seen its share of the indicator blow up. This massive capital wouldn’t be in any significant profit, however, considering the price levels at which it has flowed in.

After all, the window of the past six months is mostly just the cryptocurrency’s top and the subsequent phase of stagnation that’s still ongoing today.

"This massive capital inflow into XRP at the upper price ranges might put the digital asset in a delicate situation. It now remains to be seen how the coin would develop in the near future and whether capital would continue to flow in, despite the fact that its price has been unable to revisit the highs from January."

In some other news, the XRP network has seen a sharp decline in the Number of Active Addresses since the March peak, as CryptoVizArt.₿ has pointed out in another X post.

The Number of Active Addresses is an indicator that measures, as its name suggests, the number of addresses taking part in transaction activity on the XRP network every day.

From the chart, it’s apparent that the Number of Active Addresses set a huge peak in March of this year, but since then, activity on the blockchain has taken a severe hit as the metric has gone down by more than 90%.