XRP On-chain data screams one word “fragile”

The digital assets market is facing a hard time as US President Donald Trump ignited a tariff war despite promising a bull run for the financial markets. Ripple’s XRP which gained speed after Trump stepped in the White House is now running to find the safe ground.

Fresh On-chain data reveals that retail investors drove XRP’s massive surge in February but slowing inflows and rising losses are suggesting that the bullish momentum is now fading away. XRP price is on a constant decline, it has dropped by 13% over the past 7 days as investors’ sentiment slid into “Extreme Fear” territory.

XRP boomed on hype?

Glassnode data indicates the XRP’s realized cap nearly doubled from $30.1 billion to hit $64.2 billion during the February upward run. The $30 billion of the inflow came in from new investors. This short-term capital spike signals a retail-led momentum. Meanwhile, this run has slowed down post-February.

Less than 6 million old supply is now making up the 62.8% of XRP realized cap which is up from the 23%. It added that the rapid concentration of new holders reflects a strong retail involvement. However, it also raises a risk of fragility as many of the XRP hodlers are holding at elevated cost bases.

<6M old supply now makes up 62.8% of $XRP Realized Cap, up from just 23%. This rapid concentration in new holders reflects strong retail involvement – but also raises risk of fragility, as many hold elevated cost bases. pic.twitter.com/SzpDaA6H77

— glassnode (@glassnode) April 8, 2025

Crypto analyst, Ali Martinez, in a post mentioned that despite facing the recent volatility, the XRP network is on a surge. It has reached an all-time high of 6.26 million addresses which are holding 1 XRP or more. He added that XRP futures trading volume across all the exchanges went on to hit a monthly high of $21.62 billion.

Glassnode highlighted that the XRP Profit/Loss ratio has been on a steady decline steadily since January. Fewer profits and more losses are usually a sign of a waning conviction. It added that with the wealth concentrated in new hands, the conditions become top heavy and vulnerable.

XRP’s first leveraged ETF debuts strong

The first leveraged XRP ETF launched in the US just came out swinging. Teucrium’s 2x Long Daily XRP ETF (XXRP) clocked in $5 million trading volume on day one. This strong launch has already landed it in the top 5% of all ETF debuts ever. It is not bad for a crypto that was in legal limbo a few months ago.

While most of Wall Street was still arguing over meme coins, XRP Maxis pulled up. XXRP’s volume was four times higher than Solana’s 2x ETF when it launched and that one had serious buzz. There’s still no US-listed spot XRP ETF and Teucrium is using a mix of European exchange-traded products to build its swap-based exposure. It might not look conventional, but it’s working.

Despite a good ETF launch, XRP price dropped by another 3% in the last 24 hours, dragging it down by 19% over the past 30 days. XRP is trading at an average price of $1.82, at press time. Meanwhile, its 24-hour trading volume declined by 24% to stand at $7.4 billion.

Ethereum led a fresh digital bloodbath after Trump doubled down on tariffs after hitting 104% duties on Chinese goods. ETH dropped over 6% overnight, hitting its lowest levels since March 2023. It’s now hovering around $1,450, looking for a breather. Bitcoin took a 3% punch too, but managed to stand back up. BTC is trading around $77k levels.

Markets were holding out hope for some good old-fashioned dealmaking. Trump sort of hinted at it on Tuesday but then pulled out the tariff missiles again.

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