XRP appears primarily retail-driven this market cycle, with active addresses increasing 490% since the 2022 cycle low, while Bitcoin’s grew just 10%, according to Glassnode data. 

This surge signals heightened speculative interest in XRP from retail traders, contrasting with Bitcoin’s more stable, institutional-led rally.

Glassnode: XRP Rally Retail-Driven, BTC Institutional

Glassnode noted Bitcoin’s price growth has been steady, driven by institutional investments and ETF inflows. XRP, however, remained largely dormant before a sharp speculative breakout in December 2024.

“Despite similar price gains since the cycle low with both trading roughly 5x to 6x off the bottom, their rally paths differ,” Glassnode noted. “Bitcoin shows steady, catalyst-driven growth, while XRP’s rise is largely speculative.”

Related: Is Ripple Quietly Reducing Its XRP Sales Pressure? Escrow Data Analyzed

XRP Market Structure Raises Volatility Concerns

XRP’s recent price surge saw a rapid influx of new capital, with its Realized Cap nearly doubling from $30.1 billion to $64.2 billion. However, this momentum reportedly slowed since late February 2025, indicating a potential cooling in retail speculation.

The concentration of wealth in newer investors also increased significantly. The share of XRP’s realized cap held by addresses younger than six months jumped from 23% to 62.8%, creating a potentially top-heavy market structure vulnerable to downside volatility.

Profitability Metrics Show Signs of Weakness

Glassnode also reported XRP’s Realized Profit/Loss Ratio has steadily declined since January 2025, suggesting fewer investors are realizing profits while more are locking in losses. Such conditions often precede downturns as confidence weakens.

The Market Value to Realized Value (MVRV) ratio for XRP’s supply held at a loss registered 0.88, signaling moderate investor stress. While not as severe as past bear market lows, it raises concerns about future price stability.

Outlook: XRP Rally Sustainability Questioned

While XRP’s growth highlights retail appeal, the sustainability of this rally remains uncertain based on Glassnode’s analysis. 

Related: XRP Set for ‘Final Blastoff’ After ‘Boredom Phase’: Egrag Predicts Surge

The lack of sustained adoption evidence and reliance on retail speculation raise concerns about long-term price stability. If the surge in new addresses doesn’t translate into broader real-world usage or increased on-chain activity beyond trading, XRP could face sharp selling pressure.