What happened?
XRP has seen falling retail demand and weakening on-chain activity, with derivatives open interest down to about $3.37 billion. Daily active addresses fell roughly 18% to ~54,000 and new address onboarding plunged around 60% to about 4,770. Ripple announced $500 million for ecosystem and institutional work, but traders are largely sidelined for now.
Who does this affect?
Retail traders and speculators are most affected because reduced social momentum and liquidity make short-term trades harder and riskier. Institutional investors and funds eyeing spot ETFs may wait for clearer signals like an end to the U.S. government shutdown or regulatory clarity before jumping back in. XRPL builders and ecosystem projects could face slower adoption despite Ripple’s funding push, as fewer new users are coming on board.
Why does this matter?
Lower retail interest and shrinking open interest tend to dampen volatility and can delay or weaken any bullish breakout, so prices may stay range-bound until stronger catalysts appear. Reclaiming $2.70 would be a key trigger for a larger rally toward $3.70 — and potentially $5 if TradFi demand and an ETF materialize — but that outcome depends on broader market and regulatory shifts. Meanwhile, market FUD and capital flowing into meme-coin hype (like Maxi Doge) could divert liquidity away from XRP, amplifying short-term underperformance.