On-chain data shows activity on the XRP network has registered a large spike over the past week as volatility has engulfed the market.
XRP Active Addresses & Volume Have Shot Up Recently
In a recent post on X, analyst Ali Martinez highlighted significant trends in the Active Addresses of XRP. The “Active Addresses” refers to an on-chain indicator that keeps track of the total number of addresses that are becoming ‘active’ or online on the network every day.
An address is considered active when it engages in any form of transfer activity. This activity applies regardless of whether the address is acting as a sender or receiver, meaning each transaction typically activates at least two wallets.
When the number of Active Addresses rises, it indicates increased participation in transfers across the network. Generally, this trend is interpreted as heightened trading interest among investors. Conversely, a decline in this indicator suggests that holders may be less engaged, resulting in fewer transactions.
Here is the Glassnode chart shared by the analyst, showcasing the trend in XRP Active Addresses over the past few weeks:
The chart indicates that XRP Active Addresses ended February at a low point. However, since the beginning of March, the indicator has experienced a strong resurgence.
Martinez noted, “The number of active XRP addresses has skyrocketed by 620% in the past week, climbing from 74,589 to 462,650!” This substantial increase corresponds with a period of high volatility for the cryptocurrency.
Typically, such market conditions attract investors, leading to panic-driven actions that further amplify price volatility.
With Active Addresses currently at elevated levels, it suggests that XRP’s pronounced price movements may not be over yet. Another relevant metric, the Transfer Volume, as noted by the analyst in another post, has also seen a recent spike.
The Transfer Volume measures the total amount of the asset being transacted on the blockchain daily. While both Active Addresses and Transfer Volume reflect transaction activities, they emphasize different aspects of market behavior.
Because smaller investors constitute the majority, trends in Active Addresses align closely with their activities. In contrast, larger transactions tend to dominate the Transfer Volume, making it more indicative of ‘whale’ behavior.
Given the simultaneous spikes in both Active Addresses and Transfer Volume, it appears that all market participants are currently making moves—a response that is not unexpected given the recent market conditions.
XRP Price
At the time of writing, XRP is trading around $2.47, reflecting a more than 9% increase over the past week.
