On-chain data shows that the XRP blockchain has seen strong wallet growth recently and has overtaken giant networks like Bitcoin and Ethereum.
XRP has recently seen rapid adoption
According to data from on-chain analytics firm Santiment, top cryptocurrencies have seen significant growth in total holders over the past two years.
The “Total Holder Amount” here refers to an indicator which, as its name already indicates, makes it possible to track the total number of non-zero balance addresses present on a given network.
When the value of this metric increases, it may suggest that new investors are joining the blockchain and/or old ones who sold earlier are buying back. This trend can also occur when existing users create multiple addresses for a purpose such as privacy.
Typically, all three of these elements come into play to some extent at once whenever the total number of holders increases, so it can be assumed that some net cryptocurrency adoption is taking place.
On the other hand, the drop in the indicator implies that some investors have decided to withdraw from the asset, which is why they are clearing their addresses.
Now here is a chart that shows the trend in total holders for the top four cryptocurrencies by market capitalization: Bitcoin, Ethereum, Tether, and XRP.
All of these coins seem to have gained a significant number of holders in the last two years | Source: Santiment on X
As the chart above shows, the total amount of holders has seen a sharp increase for these four assets over the past two years. This naturally suggests that the cryptocurrency sector has seen a significant influx of users.
While Bitcoin, Ethereum, and Tether have seen a more or less consistent uptrend during this period, XRP has recently shown divergence as its indicator has skyrocketed.
From the chart, it is visible that the total number of holders started its split for the coin on October 18. Interestingly, the price of the asset only started to rise in mid-November. So it would seem that it was this rapid adoption that helped build a solid foundation on which the cryptocurrency could operate.
In terms of long-term trend, USDT has been the most adopted asset, with the total amount of holders increasing by approximately 66% over the past two years. Ethereum is second with 47% and XRP third with 28%. Bitcoin is only slightly behind with a 27% increase.
Although XRP has held up in terms of adoption rate, the network remains the smallest among these giants with its number of investors currently standing at 5.75 million.
XRP Price
XRP has seen a slowdown like the rest of the cryptocurrency sector, with its price still trading around $2.17.
Looks like the price of the coin has been stuck in sideways movement recently | Source: XRPUSDT on TradingView
Featured image of Dall-E, Santiment.net, chart from TradingView.com
