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Why Retail Investors Are Choosing XRP Over Bitcoin: Glassnode Report

Published by
Elena R

A new report from Glassnode reveals a shift in crypto investment trends. While Bitcoin struggles to gain momentum, XRP has become a popular choice among retail investors.

Since 2022, active XRP wallets have jumped by 490%, while Bitcoin wallets have grown by only 10%. This suggests that everyday investors, rather than big institutions, are driving XRP’s growth. However, Glassnode warns that this increase may be fueled more by short-term speculation than long-term confidence, raising doubts about how sustainable the rally is.

Bitcoin Stuck in a Tight Range – What Next?

Bitcoin has been trading between $76,000 and $87,000 without making any big moves. Glassnode points out that many sellers are running out of Bitcoin to sell, which is often a sign that prices could rebound. However, the absence of strong bullish signals—such as a “Death Cross” reversal—suggests ongoing market weakness. Additionally, 4.7 million BTC remain at a loss, highlighting the struggles of many investors.

Why Are Bitcoin and XRP Rising?

Both Bitcoin and XRP have risen since their 2022 lows, but for different reasons. Bitcoin’s growth has been steady, influenced by key events like ETF approvals and political changes. In contrast, XRP’s recent price jump seems to be driven by retail investors, especially those who entered the market after December 2024.

Glassnode data shows that XRP’s market value nearly doubled in a short time, rising from $30.1 billion to $64.2 billion. Interestingly, almost half of the money flowing into XRP recently has come from investors who joined the market within the past six months.

Bitcoin vs. XRP: A Cheaper Bet for Retail Investors?

Crypto analyst Raul O. Gonzalez Castilla notes that Bitcoin is often seen as too expensive, while XRP appears to be a more affordable and attractive speculative asset for small investors.

Glassnode also found that most of XRP’s retail interest comes from the U.S. and Europe, while enthusiasm is much lower in Asia and Africa. This could be due to clearer regulations in Western countries or strong community support for XRP in these regions. However, relying too much on new investors can be risky—when hype drives prices up, they can also fall just as quickly when excitement fades.

Is XRP Losing Momentum?

There are signs that XRP’s momentum may be weakening. Since late February 2025, the amount of new money flowing into XRP has slowed, and more traders are now selling at a loss.

While XRP’s recent surge has been impressive, its long-term success remains uncertain. If fewer new investors buy in, the price could drop. Glassnode warns that XRP may have already peaked, advising investors to stay cautious until clearer signs of stability appear.

FAQs

Is Bitcoin in a bear trap?

Bitcoin’s price is stuck between $76K and $87K, with selling pressure weakening, suggesting a potential rebound.

What factors could cause XRP’s price to drop?

A decline in new investor activity, reduced hype, and profit-taking by early buyers could lead to a price correction.

Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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