Retail investors prefer XRP over Bitcoin — Glassnode analysis

Retail investors are increasingly choosing the Ripple coin XRPUSD instead of Bitcoin BTCUSD, according to the latest data from Glassnode.

This contrast suggests that the speculative interest of retail investors is contributing to the recovery of XRP. Meanwhile, the rise of Bitcoin is primarily supported by institutional players.

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How retail investors influence the market

In its latest report, Glassnode noted the differences in the dynamics of the two largest cryptocurrencies — Bitcoin BTCUSD and Ripple XRPUSD. Although both assets showed similar price growth — about 5–6 times from the lows of 2022 — their trajectories reflect different investor behaviors.

“Since the lows of 2022, the quarterly average number of active XRP addresses has increased by 490%, while Bitcoin’s has only increased by 10%. This gap indicates that retail investors are showing greater interest in XRP, reflecting the speculative sentiment in the crypto market,” the report notes.

According to Glassnode, bitcoin has shown steady growth. The launch of spot ETFs and the elections in the USA have become catalysts for a significant rise. Moreover, BTC reached a new all-time high shortly before the inauguration of President Trump.

On the contrary, the rise of XRP began with a sharp spike in December 2024, driven by retail investor speculation.

“During this rise, the market capitalization of XRP in realized value nearly doubled — from $30.1 billion to $64.2 billion, reflecting a significant influx of capital,” Glassnode added.

However, such growth raises concerns as it is more related to recent investments than to long-term sustainable demand. Glassnode recorded a rapid concentration of capital among new investors: those who entered the market in the last six months accounted for nearly half of this growth — about $30 billion.

Moreover, the share of XRP market capitalization belonging to addresses younger than six months has sharply increased from 23% to 62.8% in a short period. Google Trends data shows that interest in XRP is mainly concentrated in Europe and the USA, while search activity is significantly lower in Asia and Africa.

Geographical differences indicate that the growth of XRP among retail investors may be due to the characteristics of Western markets, such as regulatory clarity or community activity.

“A sharp influx of new holders and a high proportion of retail investors raise concerns: many of them are now vulnerable to a downturn due to the high cost of entry,” noted Glassnode.

Although the popularity of XRP among retail investors is evident, the sustainability of its growth remains in question. According to a report by Glassnode, capital inflows have slowed since the end of February 2025, which may indicate a decrease in speculative activity.

In addition, starting from January 2025, the realized loss and profit coefficient gradually decreases. This means that investors receive less profit and face increasing losses.

“Given the dominance of retail investors and the concentration of capital in the hands of newcomers, it can be assumed that trust in XRP is declining, and this trend threatens to spread to the entire market,” the report emphasized.

Thus, Glassnode warns that the demand for XRP may have already peaked. The company advises exercising caution until more clear signs of recovery emerge.

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