XRP Surpasses Bitcoin in Key Metric for the First Time in History

According to recent data from Santiment, XRP's network activity is surging, marked by a sharp increase in active wallets. This positive momentum starkly contrasts with Bitcoin's situation, as the leading cryptocurrency has lost over 277,240 active wallets in the past three weeks.

Bitcoin Sees a Major Decline in Active Wallets

Over the last three weeks, Bitcoin has witnessed a significant drop in network activity, with 277,240 fewer active wallets. In contrast, XRP and Ethereum continue to show steady growth.

Chris Kuiper, research director of Fidelity's crypto division, attributes this decline to the impact of newly approved Bitcoin ETFs. These ETFs allow transactions to be settled off-chain, reducing the need for direct on-chain activity. As a result, Bitcoin’s mempool—where pending transactions are stored—remains underutilized.

However, Fidelity suggests that this shift does not necessarily indicate weakness in Bitcoin’s overall network health.

XRP and Ethereum Show Strong Growth

While Bitcoin struggles, XRP and Ethereum continue to gain momentum. Both networks are seeing a consistent rise in active wallets, signaling increased adoption and sustained blockchain activity.

This trend emerges as Bitcoin fights to stay above the $100,000 mark. As of writing, Bitcoin is trading at $96,108, impacted by disappointing U.S. inflation data. Bitcoin ETFs are also facing challenges, with outflows reaching $251 million in a single day.

What This Means for Bitcoin’s Future

Despite the decline in retail investor activity, analysts at Santiment suggest that this could be a bullish signal for Bitcoin’s long-term price action. Historically, such periods of retail withdrawal are followed by accumulation from "whales" and "sharks"—large investors who buy assets at lower prices, setting the stage for future price increases.

Cathie Wood, CEO of ARK Invest, shares this optimistic outlook, predicting that Bitcoin could reach $1.5 million by 2030.