XRP Struggles as Wallet Growth Falls Behind BTC and ETH

XRP is currently facing a critical moment as recent network activity data reveals it lags well behind major cryptocurrencies like Bitcoin and Ethereum in terms of new user engagement. Despite ongoing optimism about XRP’s long-term potential, current metrics paint a less enthusiastic picture of retail involvement.

Data from Santiment highlights a notable gap in new wallet creation among the top four cryptocurrencies by market capitalization. Over the past month, Bitcoin has seen an impressive daily average of 309,000 new wallets. Ethereum isn’t far behind, clocking a robust 112,000 daily new wallets. Tether has also maintained a solid increase with 36,400 fresh wallet addresses per day.

In contrast, XRP trails significantly, with just 3,500 new wallets being created daily. This massive divergence suggests that retail investors have shown far less enthusiasm for XRP compared to previous bullish cycles, especially notable given its impressive run in December 2024 when new wallets soared past the 20,000 mark in a single day.

This stark decline in new address creation raises concerns about the broader appeal of XRP moving forward. A weaker influx of retail users could imply limited traditional market momentum, which often fuels large gains during market upswings. Network activity indicators like wallet creation serve as an important measure of grassroots adoption and can dictate how sustainably a coin grows in value.

Bitcoin’s healthy new address statistics are consistent with earlier reports that detail its accelerating momentum as retail demand continues to support its bull run. Ethereum has also seen renewed investor interest, particularly amid developments in smart contract and Layer 2 solutions, contributing to its improved metrics.

Meanwhile, although XRP’s recent performance has been underwhelming in user engagement, some analysts remain confident about the token’s prospects. Over the last 24 hours, XRP has declined by over 5%, currently trading below $2.50 after being turned away from the $2.70 resistance level. Still, technical analysts assert that as long as XRP holds its ground above the $2.38 support point, bullish continuation remains on the table.

Such price corrections are considered normal within the fast-paced cryptocurrency market. Long-term holders often look beyond short-term dips, instead focusing on foundational levels like transaction scalability, regulatory developments, and partnerships in the cross-border payment space—areas where Ripple continues to make strides.

Yet the core issue remains: without a meaningful increase in retail wallet activity, XRP risks falling further behind its peers in the race for broad adoption. The dwindling daily wallet creation may reflect a combination of factors, from market sentiment to delayed reaction to network or legal developments. Regardless, investor enthusiasm—especially at the grassroots level—can be the fuel needed for sustainable rallies.

Ripple supporters may find some encouragement in market forecasts that emphasize the asset’s long-term value, particularly if ecosystems and financial institutions continue building on its native blockchain. As conditions evolve, keeping XRP above the strategic $2.38 support zone will be critical for holding technical momentum.

Looking ahead, XRP needs to spark renewed engagement from both existing users and new participants to compete with top projects like BTC and ETH. Without substantial gains in real network usage, especially in wallet creation, upside price trajectories may remain limited short-term, even with solid fundamentals beneath the surface.

Related: Expert Advice: Sell XRP If You’re Confused

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