Key Points
- The number of funds wallets for XRP Ledger has reached a record high of 8.24 million.
- Despite the acceleration in wallet creation, XRP still fell by 17%.
- Whale deposits and weaker ETF demand put pressure on prices.
XRP has reached a new milestone in terms of network adoption, with the number of non-empty wallets recorded by XRP Ledger reaching 8.24 million, while this cryptocurrency has fallen by 17.21% in the past month.
According to data from the on-chain analysis company Santiment, the network has seen the addition of 4,772 new wallets in just one day, which represents the fifth largest single-day increase since March.
Despite the price drop, the number of XRP Ledger wallets has still risen to 8.24 million.
The latest data from Santiment shows that the total number of non-empty XRP wallets has continued to rise amidst market fluctuations over the past few months.
The recently added 4,772 addresses show a clear acceleration in network growth, especially as XRP strives to regain the price levels of September.
This trend is similar to a previous phase: at that time, XRP added 4,300 new wallets within 24 hours, while large holders transferred their tokens out of the exchanges.
However, the act of creating a wallet in itself does not indicate whether investors are accumulating a large amount of XRP.
One person can control multiple addresses, while cryptocurrency exchanges and other institutions typically maintain multiple wallets for their operations.
Previously, XRP Whale Wallet's growth showed an increase in participation from large holders, but the increase in the number of fund addresses does not automatically lead to sustained buying pressure.
Whale deposits are increasing, while the demand for ETF is weakening.
The gap between wallet growth and price performance has emerged as large holders continue to transfer XRP to centralized exchanges.
Recent analysis has revealed that approximately $112.4 million of XRP funds flowed from whale wallets into Binance, which is said to be the highest such deposit activity in seven months.
Coinpaper Previously analyzed that within the past 30-day rolling period, 1.67 billion XRP coins flowed into Binance, highlighting the potential selling pressure that large-scale exchanges transfers may bring.
Deposits do not prove that the holder has sold the tokens, but they do increase the number of XRP tokens available for trading.
Institutional demand has also weakened compared to September.
U.S. spot XRP ETF recorded a net inflow of approximately $4.25 million in the latest reporting week, compared to a net outflow of $1.84 million in the previous week.
This slight rebound stands in sharp contrast to the $75.6 million recorded in the week ending September 25th.
The slowdown occurred after a previous period during which, despite the cumulative investment amount reaching approximately $1.8 billion, the inflow of funds into XRP ETF remained weak.
More recently, another XRP ETF loss estimate showed that the decline in token prices has exposed fund investors to considerable unrealized losses.
XRP Price Outlook: Can Wallet Growth Support $1.50?
The short-term prospects of XRP depend on whether the newly increased participation on the chain will translate into stronger market demand.
Santiment regards $1.40 as an important resistance level, believing that if the price can remain above this level and there are about 4,000 or more new wallets added each day, it will strengthen the reasons for a rebound to $1.50.
The bearish scenario revolves around $1.30.
If it falls below this level, especially when the number of new wallets added daily drops to less than about 3,000, the short-term effectiveness of the signal will be weakened.
The current situation is similar to the phase before XRP when price rebounds struggled to maintain momentum, although there were also signs of renewed interest from investors at that time.
