XRP Ledger Activity Surge Signals Growing Use

What to Know:

• XRP Ledger (XRPL) network velocity spiked to a new high, indicating increased on-chain activity and liquidity.
• Large XRP holders with over 100 million tokens have decreased in number, but their total holdings have reached a seven-year high, suggesting accumulation by fewer, larger entities.
• Wallets holding between 1 million and 10 million XRP have been reducing their holdings, contributing to a mixed picture of investor sentiment.

XRP is again in the spotlight as on-chain metrics signal heightened activity. While the broader crypto market navigates a complex macro and regulatory landscape, developments within the XRP Ledger (XRPL) offer a nuanced perspective on investor behavior and network utility. The recent surge in network velocity, coupled with shifts in large holder dynamics, presents both opportunities and potential risks for institutional and high-net-worth investors.

The XRPL recently achieved a new record in network velocity, a metric that reflects how frequently XRP changes hands within the network. According to CryptoQuant data, the velocity spiked to 0.0324, levels last seen in September 2025. This increase suggests that XRP is being actively traded rather than sitting idle in wallets. High velocity typically correlates with increased liquidity and active participation from traders, including significant movements by whales. This on-chain data confirms a period of heightened user engagement within the XRPL ecosystem.

Increased network velocity can be a double-edged sword. On one hand, it signals robust market activity and potential trading opportunities. On the other, it can also indicate speculative trading or short-term price volatility. For institutional investors, understanding the underlying drivers of this velocity spike is crucial. Is it driven by genuine utility, such as increased adoption for cross-border payments, or is it primarily fueled by speculative interest? A deeper dive into transaction types and counterparty analysis is warranted to assess the sustainability of this trend.

Interestingly, this surge in velocity coincides with notable shifts in the distribution of XRP holdings. Data indicates that the number of wallets holding at least 100 million XRP has decreased by over 20% in the past eight weeks, representing a significant exit of large holders. However, the remaining whale wallets have increased their cumulative holdings to a seven-year high of over 48 billion XRP. This divergence suggests a consolidation of XRP among fewer, but larger, entities, a trend that has been ongoing since 2023. This could imply a long-term bullish outlook among these major holders, potentially viewing XRP as an undervalued asset with future growth potential.

The behavior of these large holders can have significant implications for market structure and liquidity. A concentration of holdings in fewer hands can reduce the available float, potentially leading to increased price volatility, especially during periods of high trading volume. Conversely, it could also provide a degree of price stability if these large holders act as long-term accumulators. Institutional investors need to monitor these whale movements closely, as they can act as leading indicators of broader market sentiment and potential price swings. Consider, for example, the impact of concentrated ownership in certain stocks, where a few large institutions can significantly influence price action through their trading activity.

Adding another layer of complexity, wallets holding between 1 million and 10 million XRP have been reducing their holdings. These mid-sized holders moved or sold 150 million XRP within a short period, continuing a selling pattern observed over the past few months. This behavior could be attributed to profit-taking, portfolio rebalancing, or a response to specific market events. The contrasting actions of different holder segments highlight the mixed sentiment surrounding XRP. Understanding the motivations behind these divergent strategies is crucial for formulating a comprehensive investment thesis.

These developments are unfolding as the market anticipates potential spot XRP exchange-traded funds (ETFs) in the United States. While Bitcoin and Ethereum ETFs have already captured significant inflows, the introduction of an XRP ETF could further catalyze institutional adoption by providing a more accessible and regulated investment vehicle. The ETF approval process, however, remains subject to regulatory scrutiny and legal challenges. The ongoing legal battle between Ripple and the SEC continues to cast a shadow over XRP, influencing investor sentiment and regulatory perception. The outcome of this case will likely play a pivotal role in shaping the future of XRP and its potential integration into mainstream financial markets.

In summary, the XRP Ledger is currently experiencing a period of heightened on-chain activity and shifting holder dynamics. The surge in network velocity, coupled with the consolidation of holdings among larger entities and the selling pressure from mid-sized holders, paints a complex picture of investor sentiment. As the market anticipates potential ETF developments and navigates ongoing regulatory uncertainties, institutional investors must conduct thorough due diligence and carefully assess the risks and opportunities presented by XRP.

Related: XRP Sentiment Points to Potential Reversal

Source: Original article