XRP large traders are pulling back as network activity across the XRP Ledger drops sharply, with on-chain data showing an 85% collapse in new address creation and a 52% single-day plunge in fee burns. The token traded at $1.33 on May 23, down more than 6% over the past week and roughly 64% below its all-time high.
XRP Network Activity Falls 57% as Large Traders Go Quiet
The slowdown in XRP network usage has been steep. According to the original U.Today report, network activity fell 57% as whale transactions slowed, though the exact metric behind that figure could not be independently confirmed. What multiple data providers do confirm is a broad-based decline across nearly every on-chain indicator.
Glassnode data shows new XRP address creation plummeted 85% from roughly 18,000 per day in December 2024 to approximately 2,700 per day in May 2026. Monthly active supply contracted from 7.45 billion XRP to 2 billion XRP over the same period.
XRP New Addresses (Glassnode)
‑85%
~18,000 (Dec 2024) → ~2,700 (May 2026)
Source: Investing.com / Glassnode
CryptoQuant data paints a similar picture. XRP fee burns, a proxy for transaction throughput on the ledger, dropped 52% in a single day, falling from 942 XRP to just 451 XRP burned.
The “large traders” at the center of this slowdown are wallets holding between 100,000 and 1,000,000 XRP. According to Santiment data cited by FXStreet on May 21, these mid-tier holders have been cutting back on their positions as the uptrend falters. This is a distinct cohort from the mega-whales whose behavior tells a different story.
XRP Price Performance During the Slowdown
XRP traded at $1.33 with a 24-hour decline of 2.65% and a market cap of $81.98 billion. Daily trading volume stood at $1.97 billion.
XRP Spot Price
$1.33
▼ 2.65% (24h)
Source: CoinGecko
The decline is not a one-day event. XRP has fallen 6.05% over seven days and 6.08% over 30 days, sitting roughly 63.66% below its all-time high of $3.65 reached in July 2025. The broader crypto market reflects similar caution, with the Fear & Greed Index reading 28, firmly in “Fear” territory.
The price erosion and network activity decline appear to be reinforcing each other. As XRP’s price drifts lower, fewer new wallets are being created and fewer transactions are being processed, which in turn reduces the on-chain metrics that momentum traders watch for signs of recovery.
What Reduced Whale Activity Could Mean for XRP’s Next Move
The on-chain picture is more nuanced than a simple “whales are leaving” narrative. While mid-tier large holders (100K to 1M XRP) are reducing exposure, the biggest whales are moving in a different direction. Whale outflow dominance on Binance reached 91.4% in early May 2026, the highest level since 2024.
That 91.4% figure means nearly all XRP leaving Binance is controlled by the largest wallets. Historically, similar readings in October 2024 and June 2025 preceded upside moves in XRP’s price, suggesting potential accumulation by the biggest players even as smaller whales retreat.
XRP ETFs, which launched in November 2025, have attracted $1.39 billion in total inflows and currently hold approximately 896 million XRP. That institutional demand channel remains active despite the price weakness, a dynamic worth watching alongside the recent expansion of crypto index options as regulated products continue gaining traction.
On the regulatory front, the Digital Asset Market Clarity Act advanced in the U.S. Senate with a 15-9 committee vote in early 2026, seeking to classify XRP as a digital commodity. Combined with the earlier SEC lawsuit settlement that enabled the ETF launches, legal uncertainty around XRP has diminished substantially compared to prior years.
The divergence between mid-tier and mega-whale behavior is the critical signal to watch. Even as some market observers, including prominent crypto skeptics like Mark Cuban, question whether large holders are distorting token prices, XRP’s whale-tier split tells a more specific story. If the largest holders continue pulling XRP off exchanges at elevated rates while price remains near $1.33, it could set up a supply squeeze similar to what followed the October 2024 outflow spike.
If instead the mega-whales slow their withdrawals to match the mid-tier retreat, the current decline in network activity could deepen further.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
