XRP’s Price Jump Masks a Quiet Decline in Active Users, Data Shows

[Redator]

XRP has experienced strong price performance in recent weeks, climbing over 12% in the past month and reclaiming notable price levels.

However, as of the latest trading session, the asset is showing signs of correction. At the time of writing, XRP is valued at $3.17, representing a 1.2% decline over the past 24 hours from its recent high of roughly $3.22.

The recent surge in XRP’s value was largely driven by a major legal development. On August 7, 2025, the long-running US Securities and Exchange Commission (SEC) lawsuit against Ripple and its executives officially concluded.

The end of the case removed a significant source of uncertainty for the asset and sparked immediate price gains. However, on-chain data suggests that the rally may have been driven more by shifts within the existing investor base rather than by new market participation.

XRP On-Chain Indicators Show Mixed Market Dynamics

CryptoQuant analyst CryptoOnchain observed that daily active addresses on the XRP Ledger fell by more than 10% to around 24,701 following the legal resolution.

This decline, despite the price increase, indicates that the upward movement was likely supported by capital rotation from existing holders instead of new user adoption. In the analyst’s view, the absence of a fresh wave of participants could limit the rally’s long-term momentum unless broader retail engagement picks up.

Exchange flow data offers additional insight. Both Binance and Upbit recorded notable spikes in depositing addresses just before and immediately after the SEC case outcome was announced. Historically, such inflow surges can signal that traders are positioning for profit-taking or short-term speculation.

At the same time, withdrawals also rose during this period, implying that some new entrants were building positions. The presence of both trends highlights a mix of motives in market activity, from short-term trading to longer-term accumulation.

Liquidity Concentration and Market Outlook

Changes in exchange reserves further illustrate the evolving market structure for XRP. After a period of decline, Binance’s XRP holdings have been increasing again, while Upbit’s reserves have maintained a steady upward trend.

This reflects a growing role for the Asian market in supporting XRP trading volume. Conversely, OKX now holds almost no XRP, suggesting that most of its reserves have been withdrawn from the exchange.

CryptoOnchain noted that the combination of higher prices alongside a drop in active user numbers points toward a market environment dominated by a smaller, concentrated group of traders.

If exchange reserves continue to build rapidly, the probability of a short-term correction could increase, especially if profit-taking accelerates.

While the resolution of the SEC case has removed a major legal risk for XRP, the sustainability of recent price gains may depend on attracting new market participants and reducing short-term selling pressure.

Featured image created with DALL-E, Chart from TradingView