XRP wallet growth surges as whale selling subsides

XRP wallet growth has taken center stage as new data shows the XRP ecosystem experiencing its fastest expansion in eight months, even as large holders appear to be slowing down their selling activity. This combination of growing wallet numbers and cooling whale movements could signal a turning point for the cryptocurrency after months of price weakness.

The latest XRP price chart from CoinMarketCap shows how the token has moved over the past month, reflecting a mix of volatility and gradual stabilization. After starting the period near its monthly high, XRP faced consistent selling pressure that brought prices down to their lowest point since early July. However, recent trading days show a modest rebound as market sentiment begins to improve. This one-month view helps illustrate the correlation between XRP wallet growth and easing whale activity, suggesting that the network’s on-chain resilience may be starting to influence short-term market confidence.

Rising Wallet Activity Amid Market Pressure

In the last few days, more than 21,000 new XRP wallets were created, marking the fastest growth phase for the network in eight months. At the same time, the XRP Ledger’s decentralized exchange saw nearly one million transactions in a single day, highlighting renewed network activity and use of XRP-based trading pairs.

These two metrics together suggest rising engagement across the XRP ecosystem. However, the spike in wallet creation comes at a time when XRP’s price has been struggling, recently hitting its lowest point since July before a modest rebound. The contrast between on-chain growth and price decline raises questions about what’s driving this surge.

Why Wallet Growth Matters

Wallet creation is one of the most direct signals of blockchain network adoption. A growing number of active wallets generally implies new participants entering the ecosystem, whether they are retail users, developers, or institutional entities. When this happens during a downtrend, it can sometimes point to accumulation, as investors take advantage of lower prices to enter the market.

However, analysts remain cautious about reading too much into this. Some argue that not all wallet growth is organic. Automated trading bots, internal transfers, and large holders redistributing assets can also inflate wallet numbers. Determining whether the recent wallet spike represents genuine adoption or internal movements remains key.

Whale Activity Shows Signs of Stabilization

Large XRP holders, commonly called whales, have historically played an outsized role in influencing the token’s price. Over the past 90 days, data indicated that whales had been offloading XRP, with over $650 million worth of tokens flowing out from major wallets. This sustained selling coincided with the token’s steady decline from its summer highs.

Recently, though, that trend appears to be changing. Whale activity has shifted from strongly negative to more neutral territory, suggesting that the biggest holders may have finished distributing and could now be holding steady. When whale selling slows after a prolonged decline, it often marks the beginning of a consolidation phase.

Some market observers also point out that XRP’s futures positions have remained comparatively resilient compared to Bitcoin and Ethereum, whose open interest levels have dropped. This may indicate that speculative traders are less bearish on XRP and could even be positioning for a rebound.

Understanding the Growth Versus Price Disconnect

The divergence between increasing on-chain activity and falling prices can be confusing. Usually, rising wallet and transaction counts correlate with bullish momentum. In this case, however, the growth may have mixed origins. Some analysts believe that algorithmic trading or internal ledger activity could be contributing to inflated numbers, making the data less indicative of real adoption.

Three possible scenarios emerge:

1. Accumulation phase – Wallet growth and slower whale selling may indicate that larger players are accumulating XRP at lower levels, preparing for future upside.
2. Automated activity – The rise in transactions could reflect arbitrage or internal exchange movements, not genuine user demand.
3. Retail entry – A delayed wave of smaller investors might be joining the network, drawn by lower prices and the long-term potential of XRP.

Each of these interpretations carries different implications for price action. If accumulation is indeed happening, the network could be forming a long-term bottom.

Market Context and Potential Implications

In the short term, XRP appears to be entering a stabilization phase. The easing of whale outflows and higher wallet growth suggest growing balance between buyers and sellers. However, without a clear breakout above resistance levels, the price remains under pressure.

Looking further ahead, XRP’s long-term prospects depend on three key factors: sustained organic wallet growth, consistent reduction in large-scale outflows, and positive external catalysts such as favorable regulation or institutional adoption. Right now, XRP seems to have achieved partial progress on the first two, but lacks a strong external push.

It’s also important to remember that on-chain signals are indicators, not guarantees. A jump in wallet numbers does not automatically lead to price appreciation. Market psychology, macro conditions, and liquidity flows all play major roles. Investors should view current developments as potentially constructive but not yet decisive.

Analyst Views and Investor Sentiment

Market analysts have mixed views on XRP’s recent behavior. Some interpret the current pattern as a sign of base-building, comparing it to similar cycles observed in other large-cap crypto assets. Others warn that without meaningful volume and a confirmed price reversal, these on-chain movements could remain noise.

Retail sentiment, meanwhile, appears cautiously optimistic. Social media discussions around XRP have increased, with many highlighting the wallet growth as a hopeful indicator. Still, overall trading volumes remain muted, implying that most investors are waiting for stronger confirmation before taking new positions.

What to Watch Next

1. Sustained wallet creation – Continued growth in new wallets would strengthen the argument for organic network expansion.
2. Whale balance trends – If large holders begin accumulating again, it could support a gradual price recovery.
3. Transaction consistency – A steady level of on-chain activity without volatility spikes would indicate healthier network use.
4. Price confirmation – A decisive move above key resistance levels would validate the potential bottom scenario.

Conclusion

The recent surge in XRP wallet growth, combined with signs that whale selling has subsided, paints a cautiously optimistic picture for the asset. The data hint that the network could be stabilizing after months of decline. Still, the coming weeks will be crucial in determining whether this is a true accumulation phase or simply temporary on-chain noise. If wallet growth remains strong and major holders continue to hold rather than sell, XRP could be poised for a gradual recovery.

---

Keep yourself updated with the latest crypto news with FYI Gazette