A new report from Glassnode reveals a shift in cryptocurrency investment
trends. While Bitcoin struggles to gain momentum, XRP has become a popular
choice among retail investors.
Since 2022, active XRP wallets have increased by 490%, while Bitcoin
wallets have only grown by 10%. This indicates that everyday investors,
rather than large institutions, are driving XRP’s growth. However, Glassnode
cautions that this surge may be driven more by short-term speculation than
long-term confidence, raising doubts about the sustainability of the price
rally.
Bitcoin Stuck in a Narrow Range – What’s Next?
Bitcoin has been trading between $76,000 and $87,000 without any major
moves. Glassnode points out that many sellers are running out of Bitcoin to
sell, which is often a sign that prices could recover. However, the lack of
strong bullish signals—such as a "Death Cross" reversal—indicates that the
market continues to weaken. Additionally, 4.7 million BTC are still in the
red, highlighting the struggles of many investors.
Why Are Bitcoin and XRP Rising?
Both Bitcoin and XRP have seen price increases since their lows in 2022, but
for different reasons. Bitcoin’s growth remains steady, influenced by key
events like ETF approvals and political changes. In contrast, XRP’s recent
surge seems to be driven by retail investors, especially those who entered
the market after December 2024.
Glassnode’s data shows that XRP’s market value nearly doubled in a short
time, rising from $30.1 billion to $64.2 billion. Interestingly, nearly half
of the recent inflows into XRP came from investors who entered the market
within the last six months.
Bitcoin vs. XRP: The More Affordable Option for Retail Investors?
Cryptocurrency analyst Raul O. Gonzalez Castilla notes that Bitcoin is often
seen as too expensive, while XRP seems like a more attractive and affordable
speculative asset for smaller investors.
Glassnode also discovered that the majority of XRP's retail interest comes
from the United States and Europe, while enthusiasm is much lower in Asia
and Africa. This could be due to clearer regulations in Western countries or
stronger community support for XRP in these regions. However, relying too
much on new investors could be risky—while hype drives prices up, they can
also fall quickly when the excitement subsides.
Is XRP Losing Momentum?
There are signs that XRP’s upward momentum may be weakening. Since the end
of February 2025, new inflows into XRP have slowed, and more traders are
selling at a loss.
While XRP's recent rally has been impressive, its long-term success remains
uncertain. If fewer new investors continue to buy, the price could drop.
Glassnode warns that XRP may have reached its peak and advises investors to
remain cautious until clearer signs of stabilization appear.
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