According to data from the cryptocurrency analysis company Glassnode, XRP has emerged as a favored altcoin among Turkish individual investors in the latest cycle. Unlike Bitcoin 
$81,316, which has been largely driven by institutional investors, XRP’s price chart has been shaped by short-term demand from individual investors. Since the market’s dip in 2022, the number of active addresses on the XRP network has surged by an astounding 490%, while Bitcoin’s growth has been limited to just 10%.
XRP Shows Explosive Activity: Demand Base Shifts
XRP’s performance is noteworthy not only in terms of price but also in network activity. According to Glassnode, the number of active addresses on the XRP network has nearly increased sixfold since the last cycle’s bottom. This metric indicates heightened engagement from individual investors and a growing interest in XRP.
This surge is primarily attributed to a sudden price jump in December 2023. Until then, XRP’s price had remained stagnant, but the sudden interest from individual investors triggered a rapid rise. However, this increase, similar to previous cycles, was driven more by short-term speculative movements rather than long-term fundamental developments, highlighting the influence of FOMO among individual buyers.
In contrast, Bitcoin experienced only a 10% increase in active addresses, suggesting that institutional investors have acted in a more stable and consistent manner. Growth on the BTC side has occurred gradually, influenced by ETF approvals, macroeconomic developments, and regulatory actions. Meanwhile, XRP displays a profile susceptible to sudden movements shaped by individual waves.
Investor Profiles Diverge in XRP
The rise of XRP in this cycle has differentiated it from Bitcoin, not just through technical data but also in terms of investor behavior. While BTC prices are largely driven by large funds, ETF providers, and long-term investors, the role of individual investors in XRP has become much more pronounced. This indicates a further divergence in investor bases within the cryptocurrency market.
Another point emphasized in Glassnode’s analysis is the relationship between price and network activity. While XRP’s price has shown a rise similar to Bitcoin since the cycle’s bottom, the accompanying user activity has been significantly more intense. This suggests that the altcoin’s performance is more heavily influenced by user movements.
XRP’s speculative nature makes it appealing to individual investors but also complicates the ability to forecast price movements. For those investing in such altcoins, timing entry and exit is as crucial as technical analysis. In contrast, institutional-heavy coins tend to favor more predictable, fundamental data-driven strategies.
