On-chain data shows that more than 70% of all capital stored in $XRP entered the network along with the high prices of the last six months. In a post on X, Glassnode's senior researcher, CryptoVizArt.₿, discussed the situation regarding the capital influx related to XRP. The relevant indicator here is the 'Realized Cap', which, in summary, tracks the sum of the cost bases of all addresses on the network. In other words, the indicator provides an estimate of the total capital value that holders, as a whole, have invested in the cryptocurrency.
The graph shared by the analyst shows how this metric has changed for the $XRP
in the last decade. As visible in the graph, the Realized Cap of XRP (black curve) experienced an explosion along with the recent bullish momentum in the asset's price. This would imply that a large amount of new capital entered the cryptocurrency. In the same graph, the Glassnode researcher also attached data related to the Realized Cap associated with different groups of coins less than six months old. The aggregated Realized Cap saw its growth in the last six months, so it is not surprising to see that the capital held by cohorts in this age range saw its share in the indicator explode.
This massive capital would not be in significant profit, however, considering the price levels at which it flowed. After all, the window of the last six months is primarily just the top of the cryptocurrency and the subsequent stagnation phase that is still ongoing today. 'More than 70% of the capital locked in XRP was deployed near the top in the last 6 months,' notes the analyst. Naturally, this could put the digital asset in a delicate situation, as it would not take much of a drop to throw all these investors into the red. It remains to be seen how the coin will develop in the near future and whether capital will continue to flow, despite the fact that its price has not managed to revisit the highs of January.
In other news, the XRP network saw a sharp decline in the Number of Active Addresses since the peak in March, as CryptoVizArt.₿ pointed out in another post on X. The Number of Active Addresses is an indicator that measures, as the name suggests, the number of addresses participating in transaction activity on the XRP network each day. From the graph, it is apparent that the Number of Active Addresses reached a significant peak in March of this year, but since then, activity on the blockchain has suffered a major impact, as the metric has dropped by over 90%.
The price of XRP has continued to show overall sideways action recently, as its price is still trading around $2.34.
