On-chain data reveals a sharp divergence in investor behavior, with XRP attracting a surge in short-term retail interest while Bitcoin’s growth remains institutionally anchored
Retail investors are flooding into XRP at a dramatically faster pace than Bitcoin, according to leading blockchain analytics firm Glassnode.
The data reveals a growing divide in market structure. XRP’s average daily active addresses have surged 490% since the 2022 cycle low. In comparison, Bitcoin has seen only a 10% increase over the same period.
“Retail enthusiasm has been attracted by XRP, thus providing a mirror for speculative appetite in the crypto space,” Glassnode wrote in its blog post.
The firm noted that XRP’s realized cap nearly doubled from $30.1 billion to $64.2 billion during its December 2024 rally, $30 billion of which came from investors who entered in just the past six months.
Glassnode warns of fragile market structure
Glassnode’s data shows that XRP’s recent rally may be running out of steam. Since late February, the number of investors locking in profits has steadily declined, while most new buyers now hold XRP at higher entry prices, making them more exposed to losses if prices fall.
“This sharp uplift in new holders raises caution signs,” the firm noted, warning that many recent investors could face downside risk.
The market now appears dominated by short-term speculation. Glassnode describes the current setup as “top-heavy,” meaning that a large share of XRP is now held by newer, higher-risk investors who bought in during the recent surge.
Its analysis also shows that more XRP holders are beginning to sell at a loss. Since January 2025, the profit-versus-loss ratio has dropped, suggesting that confidence among retail investors may be fading.
Bitcoin faces ‘death cross’ as retail shifts elsewhere
The differences between XRP and Bitcoin go beyond who’s buying them. They also reflect how each market is behaving under the surface.
XRP’s recent rally has been fast and speculative, while Bitcoin looks to be entering a more cautious phase. According to Glassnode, Bitcoin has shown a bearish pattern called a “Death Cross,” where short-term activity has dropped below longer-term trends—often a sign of further downside ahead.
Bitcoin investors are also seeing fewer profits. Over 4.7 million BTC are currently held at a loss, and a key profitability measure is near its lowest point in this cycle. Even though Bitcoin has bounced back each time it nears the $76,000 level, these recoveries haven’t turned into a full rebound.
Glassnode believes XRP’s surge may have already peaked and that Bitcoin is still working through the effects of its fall from the $109,000 high. With retail excitement fading and investor confidence shaken, both assets could be heading into a quieter period.
“Given the retail-dominated inflows and largely concentrated wealth in relatively new hands, this alludes to a condition where retail investor confidence in XRP may be slipping,” the firm wrote.
