XRP’s waning price performance seems to have finally influenced the network’s activity, which has seen a notable cooldown in the month of May. Just a few days into May, the network is struggling to attract new wallet addresses. After over a year, new addresses have fallen to one of their lowest levels. New XRP Addresses Drop Dramatically The XRP network’s activity and its price are starting to move toward the same negative direction. While the recent momentum in price is slowly fading away, user growth across the network appears to have sharply cooled down. The slowdown is a result of a significant drop in the number of new wallet addresses created on the network. According to the chart from Glassnode, a popular research and on-chain data analytics platform, the metric has fallen from its peak in late 2024. Currently, the tide of new user onboarding and involvement that formerly drove network growth has slowed in recent months. Glassnode announced that new wallet addresses on the XRP network have collapsed from 18,000 XRP in a single day in December to about 2,700 XRP per day as of yesterday. This drop from the 2024 high to today’s levels represents a more than 85% decrease after over a year. In the ever-evolving crypto market, new addresses are often linked to retail investors. Therefore, the declining new addresses’ activity points to a sign of weakening retail involvement, particularly during times of increased speculation and market excitement. Amid this fading, new wallet addresses created on the XRP network , its monthly active supply is telling a different story. As reported by Glassnode, the monthly active supply is exhibiting bearish activity, dropping from 7.4 billion XRP per day to around 2 billion per day over the same period. Looking at the setup, the platform has highlighted that the speculative wave that pushed that altcoin’s surge in late 2024 has largely unwound at the network level. In the meantime, this development could either mark a temporary pause or a large change in the adoption trends of the altcoin. A Continued Decline In Waning Downside Pressure Market sentiment has heavily shifted, causing a wave of pullback across major crypto assets. XRP was impacted by this drawdown, which has now fallen further despite the absence of significant downside pressure. Such a trend is developing a disconnect in the market where buyers are stepping back, rather than sellers forcefully taking control. During the period, CW, a verified author at the CryptoQuant platform, has revealed that a trader is net buying a massive volume of futures positions at the current price level. While strong upside pressure is starting to emerge, the price is not rising significantly. This may be linked to the persistent purchase of long positions by a trader, which is currently blocking the rise.
