After one of the most powerful bull rallies between November 7, 2024 and mid-January 2025, when XRP increased by more than 485%, the token is now shows signs of slowing down. In particular, network data shows a sharp drop in daily active addresses by 65%. From a peak of 63.389 active addresses on January 16, 2025, active XRP wallets have fallen sharply to 22.859 as of April.

The bullish sentiment was largely driven by investor hopes that the new cryptocurrency administration could benefit Ripple and its ecosystem. During this time, the number of daily active addresses increased by 432.6%. The realized capitalization grew from $30.1 billion to $64.2 billion, with almost $30 billion of this growth added in just six months, according to Glassnode data.

The new infusions concentrated wealth into the hands of new holders, and over 62.8% of XRP's realized market cap now belongs to investors who entered during the specified time frame. As enthusiasm waned in late February, signs of a retreat in the speculative wave emerged. The realized profit/loss ratio has been falling since January, indicating growing losses and smaller profits, which is often a harbinger of waning market confidence. Combined with the sharp decline in online activity, this suggests that many of these new holders are now in the red, increasing the risk of panic selling.