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On-chain data shows the XRP blockchain has witnessed sharp wallet growth recently and has outpaced giant networks like Bitcoin and Ethereum.
XRP Has Been Gaining Rapid Adoption Recently
According to data from the on-chain analytics firm Santiment, the top cryptocurrencies have witnessed significant growth in Total Amount of Holders over the last couple of years.
The “Total Amount of Holders” here refers to an indicator that, as its name already suggests, keeps track of the total number of non-zero balance addresses that are present on a given network.
When the value of this metric rises, it can suggest new investors are joining the blockchain and/or old ones who had sold earlier are buying back. The trend can also arise when existing users create multiple addresses for a purpose like privacy.
In general, all three of these are at play to a degree at once whenever the Total Amount of Holders goes up, so some net adoption of the cryptocurrency could be assumed to be taking place.
On the other hand, the indicator going down implies some of the investors have decided to exit from the asset, which is why they are clearing out their addresses.
Now, here is a chart that shows the trend in the Total Amount of Holders for the top four cryptocurrencies by market cap: 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 is visible in the above graph, the Total Amount of Holders has seen a sharp increase for all four of these assets over the last couple of years. This naturally suggests that the cryptocurrency sector has seen a high influx of users.
While Bitcoin, Ethereum, and Tether have witnessed a more or less consistent uptrend in this period, XRP has shown divergence recently as the indicator has skyrocketed for it.
From the chart, it’s visible that the Total Amount of Holders started its breakaway for the coin on October 18th. Interestingly, the asset’s price didn’t begin to rally until the middle of November, so it would seem that it’s this rapid adoption that helped build up a solid ground for the cryptocurrency to run on.
In terms of the long-term trend, USDT has been the asset that has seen the most adoption, with its Total Amount of Holders rising by around 66% during the past two years. Ethereum has been second at 47% and XRP third at 28%. Bitcoin has only been marginally behind with a 27% increase.
While XRP has held its own in terms of adoption rate, the network is still the smallest among these giants with its number of investors standing at 5.75 million right now.
XRP Price
XRP has observed a slowdown alongside the rest of the cryptocurrency sector as its price is 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 from Dall-E, Santiment.net, chart from TradingView.com
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