Recent on-chain data indicates that a significant portion of XRP’s Realized Cap is controlled by investors who entered the market in the last six months. This blog will explore the implications of this trend for the asset.
XRP Investors Younger Than Six Months Have Significantly Increased Realized Cap Share
According to a recent post by the on-chain analytics firm Glassnode, the dynamics of XRP’s Realized Cap have shifted dramatically in recent months. The term “Realized Cap” refers to an indicator that tracks the total amount of capital that the holders of an asset have invested into it.
Changes in this metric reflect the inflows and outflows the cryptocurrency experiences. The accompanying chart illustrates the trend in the Realized Cap for XRP over recent years.
As evident from the graph, XRP’s Realized Cap has surged in the past few months, indicating a considerable influx of capital into the cryptocurrency. Specifically, the metric has experienced a substantial increase, rising from approximately $30.1 billion to $64.2 billion.
Moreover, Glassnode has provided insights into the capital distribution within recent investor age groups. The data shows that the capital held by cohorts such as 1-month to 3-month and 3-month to 6-month investors has spiked significantly, aligning with the observed growth in the overall Realized Cap.
This spike in capital can be interpreted as a sign of retail-led momentum. However, it appears that this momentum has begun to decelerate, as the growth in the metric has recently moderated.
One consequence of these fresh capital inflows is a reshuffling of investor dominance within the XRP community. Another chart from Glassnode illustrates that the share of Realized Cap held by new investors (those in age bands under 6 months) has increased dramatically.
Preceding these new inflows, this cohort accounted for only 23% of the Realized Cap; this figure has now ballooned to 62.8%. Essentially, this means that over 62% of the total capital invested in XRP was injected at price levels experienced over the last six months.
Considering that XRP is currently trading below the levels it held during much of this timeframe, a majority of these newer holders may find themselves facing losses. Glassnode notes, “This rapid concentration in new holders reflects strong retail involvement – but also raises the risk of fragility, as many hold elevated cost bases.”
The data suggests parallels to conditions observed in prior bull markets, where similar patterns preceded market tops. With capital inflows decelerating amid price declines, it is plausible that XRP is again experiencing a repeat of such scenarios.
XRP Price Insights
Reflecting on recent developments, XRP’s price has declined by over 8% in the past 24 hours, reverting to $1.78 after its latest recovery.
