### XRP: The Retail Investor’s New Favorite Amidst Bitcoin’s Institutional Surge
In a significant shift from Bitcoin’s rally driven by institutional investors, XRP has captured the attention of retail investors, with active addresses soaring by nearly 500% over the past three years, according to recent data from crypto analytics firm Glassnode. “XRP has emerged as a new retail favorite this cycle, diverging from Bitcoin’s more institutional-driven rally,” the firm tweeted on Wednesday. “Since the 2022 cycle low, XRP active addresses are up +490%, while BTC has only seen a +10% increase – a sharp signal of speculative retail demand.” This remarkable increase in XRP activity underscores a fundamental transformation in the cryptocurrency landscape. Retail enthusiasm has increasingly shifted toward alternative digital assets, while Bitcoin has primarily benefited from institutional investments through U.S. spot ETFs.
Interestingly, while both Bitcoin and XRP have shown similar overall performance since 2022, each trading approximately 5 to 6 times above their cycle lows, their growth paths tell very different stories. Bitcoin’s ascent has followed a more stable trajectory, marked by strategic catalysts such as the launch of spot ETFs and developments related to U.S. elections. In contrast, XRP remained relatively flat until November 2024, when it experienced a dramatic surge of over 400%, a pattern more indicative of speculative retail interest.
According to Glassnode, this retail-driven momentum has resulted in significant capital inflows for XRP, with its Realized Cap nearly doubling from $30.1 billion to $64.2 billion. “Close to $30B of this increase came from investors deploying capital within the last six months, highlighting the short concentration of this retail-led rally,” the firm noted. Enhancing XRP’s appeal is the newly launched RLUSD stablecoin, which has been integrated into Ripple’s payment systems to improve cross-border transactions. Analysts from Santiment report that RLUSD has seen an 87% increase in adoption and has surpassed $10 billion in trading volume on platforms like Kraken, further solidifying institutional interest in Ripple’s infrastructure.
However, on-chain data indicates that the speculative enthusiasm surrounding XRP may be waning. Since late February 2025, capital inflows into XRP have noticeably slowed, coinciding with a shift in profit-taking behavior that raises concerns. “Combined with high retail involvement, the rapid increase in new holders is a warning sign,” Glassnode cautioned. “Many of these investors are now exposed to downside volatility, given their elevated cost basis.”
That said, while Bitcoin consolidates above the $81,000–$85,000 demand zone following its correction from the $109,114 all-time high, XRP has also shown resilience, bouncing back above the key support level at $1.95. Analysts predict that a bullish breakout could propel XRP above its all-time high. Conversely, a failure to maintain support may lead to a 40% correction, completing a potent shift in the market dynamics.
