XRP is facing a sharp decline in network engagement, as new addresses on its ledger have collapsed by 85%—from 18,000 per day in December 2024 to just 2,700 today. This dramatic drop is mirrored by a fall in monthly active supply, down from 7.45 billion XRP to around 2 billion, signaling a significant exit of market participants. The plunge in fresh addresses points to waning interest among traders and a potential loss of momentum for the asset.
Compounding the negative sentiment, a recent burst of on-chain activity proved to be a false dawn. Payment volume on the XRP Ledger spiked over 1,000% at the start of July, briefly sparking speculation of institutional adoption or renewed demand. However, within days the metric returned to baseline, with analysts tying the anomaly to large internal transfers—such as exchange wallet reorganizations—rather than genuine user adoption. Despite the spike, XRP remained below its 50- and 100-day moving averages, stuck under the $1.20 50-day EMA resistance.
The combination of declining new addresses and the fake payment surge has left XRP in a precarious position. Traders are growing skeptical of isolated on-chain spikes, and the lack of new entrants threatens the asset’s ability to mount a sustained recovery. While buyers have defended the $1.05–$1.10 support zone and the RSI has bounced from oversold levels, the overall picture remains cautious. Without a reversal in address growth or a catalyst that brings organic demand, XRP may continue to drift amid mixed market signals.
