Retail Investors Drive XRP’s Growth While BTC Stalls

A new report from Glassnode reveals an interesting shift in crypto investment trends. While Bitcoin struggles to maintain bullish momentum, XRP has become a hotspot for retail investors.

Since 2022, active XRP wallets have surged by 490% compared to Bitcoin’s modest 10% rise. This suggests that everyday investors, rather than big institutions, are fueling XRP’s growth. However, the report also warns that this surge could be driven more by short-term speculation than long-term confidence, raising questions about whether XRP’s momentum will last or fade over time.

$XRP has emerged as a new retail favorite this cycle, diverging from #Bitcoin’s more institutional-driven rally. Since the 2022 cycle low, $XRP active addresses are up +490%, while $BTC has only seen a +10% increase – a sharp signal of speculative retail demand. pic.twitter.com/mGRuktUVXK

— glassnode (@glassnode) April 3, 2025

BTC at Bear Trap?

Looking at the current scenario, Bitcoin has been stuck between $76,000 and $87,000, not making any big moves up or down. Moreover, according to Glassnode, many sellers are running out of Bitcoin to sell, which usually hints at a possible price rebound. With no sign of rally indicator like “Death Cross” signals ongoing weakness. Plus, 4.7 million BTC remain at a loss, showing investor struggles.

Retail vs. Institutional: A Tale of Two Cryptos

Both Bitcoin and XRP have grown in value since their 2022 lows but for different reasons. Bitcoin’s rise has been steady, mainly influenced by major events like ETF approvals and political changes. On the other hand, XRP’s recent surge seems to have been fueled by excitement among small investors, who jumped in after December 2024.

Glassnode’s data shows that XRP’s market value nearly doubled in a short time, from $30.1 billion to $64.2 billion. However, most of this growth comes from new investors. Almost half of the money flowing into XRP in recent months has come from people who entered the market in the last six months.

In response to Glassnode data, Crypto analyst Raul O. Gonzalez Castilla highlights how Bitcoin is often seen as expensive while XRP appears to be a more attractive speculative opportunity for retail investors.

Esto es parte de lo comentaba, #bitcoin puede percibirse caro, pero Cryptos como $XRP pueden percibirse como oportunidad para especular por parte de inversores de retail. La gráfica muestra la actividad de direcciones de BTC vs. XRP. Vía @glassnode pic.twitter.com/bfV12XI9mG

— Raul O. Gonzalez Castilla (@RaulGlzC) April 2, 2025

What’s Driving XRP’s Popularity?

Glassnode also found that most of XRP’s retail interest comes from the U.S. and Europe. In contrast, places like Asia and Africa show much less excitement for the coin. This could be because of clearer regulations in Western countries or because of strong community support for XRP in these regions. However, relying too much on new investors can be risky. When a cryptocurrency’s price is mainly pushed up by hype, it can also drop just as fast when that excitement fades.

Is XRP Losing Momentum?

Signs suggest that XRP’s rally may be slowing down. Since late February 2025, the amount of new money flowing into XRP has decreased. At the same time, the number of people making profits has dropped, meaning more traders are now selling at a loss.

While XRP’s recent surge has been impressive, its long-term success is uncertain. If fewer new investors buy in, the price could drop. Glassnode warns that XRP may have already peaked, and investors should be cautious until there are clearer signs of stability.