The XRP Ledger has seen a significant drop in the number of new accounts created, suggesting a decline in interest from new investors. While there was a surge in activity earlier in the year, with over 30,000 new accounts activated in a single day, as of December 22, 2024, only 1,756 new accounts have been activated. This significant decline suggests that the XRP coin project is struggling to attract new investors, which could be detrimental to its expansion. The decline in the amount of transactions on the network also raises concerns, as the volume of transactions has decreased significantly compared to previous months.
Is XRP Coin Failing to Attract New Investors?
The recent low price performance of XRP is supported by on-chain data. According to the data, a significant decrease in new account openings was observed on the XRP Ledger. While there was a high level of activity at the beginning of the year, with more than 30,000 new accounts being activated in a single day, this number was recorded as only 1,756 on December 22, 2024. This significant decrease indicates that XRP is not attracting new investors, which could have negative consequences for the growth of the project. In addition, the decrease in the amount of transactions made on the network reinforces this situation, as activity has decreased significantly compared to previous months.
The decline in participation from individual and institutional users is often associated with a decline in trading volume. Therefore, according to analysts, this decline in network usage indicates a decrease in interest in XRP. In terms of price, XRP’s failure to break out of the descending triangle formation is also problematic. Despite previous attempts to break out, the price has not gained momentum and is currently trading at around $2.43.
The downtrend is exacerbated by the lack of new investors and decreasing network activity. Analyst Arman Shirinyan notes that critical support levels for XRP at $2.15 and $1.62 should be closely monitored. A drop below these levels could signal a larger correction. The decline in the number of users, the decline in trading volume, and the slow price movement are serious problems for XRP, and investors seem reluctant to invest more in the cryptocurrency.
According to the analyst, without new interest or activity, XRP may have difficulty maintaining its current position. Another possibility is the start of a new rally. However, current data draws a network profile that is losing its appeal. Still, analysts believe that a turnaround can occur through major partnerships or network updates. It is emphasized that these issues should be resolved quickly. Otherwise, XRP's position in the cryptocurrency market could seriously weaken.