XRPL activity is back above its May peak, whale deposits to Binance have collapsed and leverage is rebuilding, but spot demand keeps fading.
The token fell to about $0.98 this week before recovering toward $1, according to CryptoSlate data, extending a retreat that has erased much of its May rally. Crowd commentary around XRP simultaneously reached its most bearish level in three months across X, Reddit, Telegram, and other crypto channels tracked by Santiment.
Beneath that price weakness, several parts of the market have strengthened. More addresses are using the XRP Ledger (XRPL), large holders are moving less XRP onto Binance, and traders are adding leveraged exposure.
Yet, fresh investment demand has moved in the opposite direction, while growth in parts of XRPL's user base has outpaced the capital and transaction value accompanying it.
XRPL has therefore entered August with more active addresses, stablecoin holders and RWA holders, while growth in the capital and economic turnover accompanying that participation has been considerably less consistent.
As a result, the network development efforts have increasingly centered on deeper liquidity, decentralized trading, consumer applications, stablecoins and tokenized assets that could give users more reasons to remain active on-chain.
This shows that the pace of new institutional capital entering the market has declined significantly for three consecutive months, alongside XRP's price retreat.
For context, June inflows were roughly 55% below May's total, while July fell another 54%. August's $3.27 million intake is already about 88% below July's full-month figure, though half of the month remains.
So, a stronger return of spot capital would meet a market with stronger network participation and lighter exchange-side pressure, which could generate the demand needed to sustain a recovery.