XRP Ledger Activity Sees Significant Decline: Insights from Market Analyst

XRP Ledger activity has sharply decreased, with metrics showing active users, payment volume, and sender accounts plummeting between 50% and 80% over recent weeks, according to analyst Arthur.

XRP Ledger

This drop has triggered discussions about whether the network is truly weakening or if the activity is simply migrating away from public dashboards due to a newly launched institutional trading feature.

Public XRPL Metrics Decline

In a post shared on X on February 23, Arthur stated that active users identified by tags fell from over 200,000 to approximately 38,000. Concurrently, the payment volume dwindled to around 80 million XRP from more than 2.5 billion, and the number of unique sending accounts dropped from over 40,000 to about 3,000. While these figures were labeled as “bad,” Arthur maintained that they might not accurately convey real network demand.

He connected the decrease to the activation of XLS-81 on February 18, which introduced a regulated decentralized exchange facilitating trading within restricted pools. Transactions processed in these private channels do not show on public trackers. Arthur also suggested that the late-2025 spike in activity reflected retail flows visible on-chain while institutional flows may be transitioning to private transactions.

Simultaneously, the XRP pro criticized inflated price predictions circulating on social media, including one by trader CryptoBull2020 from February 22, which forecasted XRP reaching $15 by March and $70 by May. Arthur emphasized that liquidity and macroeconomic factors are more significant than social media hype.

At the time of writing, XRP was priced around $1.39, reflecting a 2% decline in the last 24 hours, a 5% fall over the week, and a 27% decrease in the past month. Over the last year, it has dropped more than 46% and stands over 60% below its July 2025 high of $3.65.

In contrast, Bitcoin (BTC) has remained relatively stable, according to the pseudonymous analyst Darkfost, suggesting limited direction among altcoins.

Arthur also reported that over 31 million XRP transferred to wallets on Binance in just one day, primarily from large holders. This movement could indicate about $45 million in potential sell pressure if these assets are offered in the market.

Valuation Indicators Show Diverging Trends

A recent report from Santiment provides further context, indicating that XRP has experienced its most considerable recorded loss spike since 2022, plummeting from approximately $3.60 to nearly $1.10 earlier this month. The firm highlighted that past spikes had preceded a remarkable 114% price rise within about eight months, although it refrained from asserting that this pattern will inevitably occur again.

Another assessment by Santiment compared MVRV ratios, ranking Ethereum as the most undervalued major cryptocurrency at -14.3%, followed by Bitcoin at -6.9%, and XRP at -4.1%. This metric assesses whether holders are operating at a profit or loss relative to their original investment.