Network Activity on XRP Has Dropped, Deposits to Exchanges Have Increased: What’s Going On?

Cryptocurrency analytics companies CryptoQuant and Glassnode have shared noteworthy data regarding the XRP market. According to their analysis, a significant divergence is emerging in the transaction flow of XRP across exchanges, while network activity is also experiencing a sharp decline.

According to CryptoQuant data, a strong increase in XRP deposits, particularly on Bybit, is noticeable. Yesterday, the XRP deposit delta data rose to 26,600, surpassing the 23,500 level recorded on February 22nd. This level is one of the highest seen on Bybit since the sharp rise in February.

The report noted that the key point wasn’t just the increase in Bybit inflows, but also the divergence in XRP flows between major exchanges. While net deposits on Bybit were rapidly increasing, data for Binance and Coinbase remained near zero or in negative territory. In other words, while the pressure to deposit XRP was increasing on Bybit, Binance and Coinbase continued to show a weaker or withdrawal-dominated trend.

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CryptoQuant analysts said that Bybit has become an “outlier” exchange in the market in this sense. The fact that Bybit’s deposit delta data on the daily chart has remained above 4,000 transactions per day since April 28th indicates that the movement is a sustainable upward trend rather than a sudden one-day jump. It is also noteworthy that the current levels are approaching the period when XRP deposit activity sharply increased in mid-February.

The report also stated that coin movements entering exchanges generally represent liquidity flowing into trading platforms, which could indicate increased speculative activity, hedging positions, or potential sell preparations. However, CryptoQuant emphasized that this indicator measures the number of transactions, not the total amount of XRP moved, and should not be interpreted as direct proof of large-scale selling.

On the other hand, data shared by Glassnode revealed a significant weakening of activity on the XRP network. According to the analysis, the number of new daily addresses on the XRP network has decreased by 85 percent, falling from 18,000 in December 2024 to approximately 2,700 today.

Similarly, it was noted that the monthly active supply data also decreased from 7.45 billion XRP per day to approximately 2 billion XRP during the same period. Glassnode stated that the speculative wave supporting XRP’s sharp rise at the end of 2024 has largely diminished at the network level.

*This is not investment advice.

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