- XRP’s massive 500 million token release raises concerns over market stability.
- Retail-driven surge in XRP activity signals fragile momentum and growing volatility.
- XRP’s top-heavy cost basis risks further price corrections for recent investors.
Ripple has once again released a massive chunk of XRP into circulation, unlocking 500 million tokens from escrow. The move, reported by Whale Alert, sparked intense scrutiny from analysts and the broader crypto community.
Notably, 300 million XRP worth over $612 million was transferred to an unknown wallet, raising questions about Ripple’s long-term strategy and the health of the market.
another mystery XRP unlock. pulling liquidity out of thin air🎩✨🌬️
— 💎GEM INSIDER💎 (@gem_insider) April 3, 2025
XRP is currently trading at $2.05, down 3.03% in the past 24 hours and 13.56% over the last week. With a circulating supply of 58 billion XRP, the token commands a market cap of nearly $120 billion. However, despite its scale, analysts warn that momentum behind XRP may be fading.
Slowing Momentum Signals Fragile Sentiment
A recent report from blockchain analytics firm Glassnode outlines growing concerns over XRP’s sustainability. According to their analysis, XRP’s rally in late 2024 differed sharply from Bitcoin’s more measured climb.
While Bitcoin grew steadily, boosted by catalysts like spot ETF approvals and political shifts in the U.S., XRP’s gains appear more speculative. It remained stagnant for much of 2023 before experiencing a sharp rise, indicating sudden retail-driven interest rather than structured investment.
Moreover, the data reveals that XRP’s active address count surged by over 490%, compared to just a 10% increase for Bitcoin. This dramatic growth highlights a wave of retail enthusiasm. However, Glassnode warns that such activity may be masking a lack of deep, institutional engagement.
The rapid influx of capital, which saw XRP’s realized cap double to over $64 billion, has notably slowed since February 2025. This shift suggests that speculative interest may be cooling off, potentially exposing recent investors to greater downside risk.
Cost Basis Concentration Heightens Volatility
Additionally, Glassnode emphasized XRP’s “top-heavy” cost basis. A significant share of new holders entered at higher price levels, making them more vulnerable to price corrections.
This concentration suggests growing fragility, especially as losses begin to pile up across retail portfolios. Consequently, many investors are showing reduced confidence in XRP’s near-term prospects.
Meanwhile, broader market trends also indicate a shift. A combined study by Kaiko Research and Blockhead Research Network suggests that traditional altcoin seasons may be over. Only a select few tokens those tied to strong narratives or ETFs are likely to outperform moving forward.
