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XRP Sees Strongest Network Growth of the Year, According to Santiment

XRP experienced one of its most significant network growth spurts of the year, with analytics firm Santiment reporting the creation of 4,300 new wallets within a 24-hour period. This marks the fourth-largest spike of 2024. Santiment highlighted the importance of this development, stating that “network growth is among the top leading signals to identify reversals,” positioning the wallet surge alongside on-chain metrics that suggest XRP is trading in a lower-risk zone.

Undervalued Setup for XRP

This data point was also discussed by Santiment’s Brian Quinlivan during a recent livestream. The XRP segment stood out due to a combination of new wallet creation, depressed profitability metrics, and relatively subdued crowd sentiment. Quinlivan noted that XRP’s MVRV setup resembled that of Ethereum, but with a more pronounced long-term drawdown among active holders.

According to Santiment data cited during the livestream, XRP’s 365-day MVRV was approximately negative 35.12%, while its 30-day MVRV had fallen back into negative territory at roughly negative 3%.

Quinlivan argued that this combination places XRP in a statistically less overheated position compared to periods when recent and longer-term holders hold substantial unrealized gains. “Again, that golden rule, they’re both below zero, meaning you’d be buying whether you’re doing short or long-term trading at a less risky point than the average moment in XRP’s 11, 12 year history now,” he said.

He further emphasized the significance of the long-term figure, noting that readings below negative 30% often indicate a point where the average active holder has already absorbed significant losses. “Anything below 30, no matter what asset you’re looking at, that’s something that should provide confidence in your investment because you have something that quantifies how much blood in the streets there is,” he stated. “You can buy knowing that your fellow peers that you’re trading against, you’re not on the same team just because they’re investing in the same asset. You’re buying when those fellow peers have already experienced immense losses that you haven’t because you’d be opening a fresh new entry into XRP.”

Sentiment Analysis

Sentiment data further supported this assessment. Quinlivan noted that XRP’s social tone had been “pretty up and down lately,” but was leaning more negative than usual, which Santiment typically views as constructive from a contrarian perspective. The asset was showing about 1.7 bullish comments for every bearish comment, a level that, while seemingly elevated, is below XRP’s typical social baseline, which tends to be closer to a 2-to-1 bullish ratio.

He added that, excluding an outlier around May 14, XRP sentiment had remained below its typical average for approximately the preceding 10 days. This is significant because, according to Santiment’s framework, excessive bullishness often appears near local tops, while apathy or frustration can emerge near more attractive entry points.

The livestream also contextualized XRP within a broader altcoin environment. Quinlivan observed that many assets have faced negative sentiment due to their failure to follow Bitcoin into a more convincing rally. He cited the rapid fading of market attention around specific integrations or partnerships if price doesn’t respond, using the XRP-related hype surrounding a Rakuten partnership approximately a month prior as an example of how narratives can lose traction without market confirmation.

At the time of this report, XRP was trading at $1.36.

XRP Sees Surge in New Wallet Creations, Signaling Potential Market Shift

XRP experienced a significant increase in new wallet creations, with 4,300 wallets added in the past 24 hours, according to data released by Santiment on May 22. This marks the fourth-largest spike in network growth this year.

Market Activity and Derivatives

The surge in wallet creation coincided with XRP trading near $1.37. Simultaneously, derivatives activity on platforms like Binance and CME increased, despite the token’s recent underperformance. This spike in new wallets is noteworthy because network growth often precedes significant price movements, indicating shifts in trader interest.

Santiment highlighted that the recent wave of wallet creations was one of the largest for XRP in 2026, noting that network growth is a strong indicator of potential market reversals. This data also emerged during a period of heightened activity in the token’s derivatives markets. Open interest (OI) for XRP futures on Binance reached $488 million this month, according to Arab Chain.

This OI figure is among the highest since March, following a steady increase throughout May. Analysts often interpret rising OI as a sign of traders adding leveraged positions, although it doesn’t necessarily predict market direction.

Exchange Flows and Price Performance

Additionally, exchange-flow data from analyst Amr Taha revealed that Binance XRP withdrawals accounted for 53% of transaction share, compared to 47% for deposits. The last time withdrawals reached a similar level was April 10, when XRP was trading around $1.34.

A higher withdrawal share can suggest that traders are moving tokens off exchanges, potentially to hold them. However, this activity doesn’t automatically signal an upcoming rally; it could simply indicate reduced selling pressure in the short term.

Despite the increased trading activity, XRP’s price has remained relatively stable. At the time of writing, CoinGecko data showed the asset down 0.3% in the past 24 hours, trading between $1.35 and $1.38. The token is also down 8% over the past week and nearly 5% for the month. Year-to-date losses exceed 43%, leaving the Ripple token more than 62% below its July 2025 all-time high of $3.65.

Institutional Engagement

Institutional engagement remains strong. As previously reported by CryptoPotato, CME’s XRP futures products processed approximately $63 billion in notional trading volume during their first year.

CME launched the contracts in May 2025, offering standard and micro-sized futures tied to the XRP-Dollar Reference Rate. Since then, traders have exchanged roughly 1.32 million contracts, equivalent to 28.6 billion XRP.

On-chain data indicates that XRP whales have significantly increased their holdings over the past week, accumulating 71 million coins even as the asset’s price declined.

Whale Activity and Market Sentiment

Analyst Ali Martinez recently highlighted this trend in a post on X, focusing on the supply held by large XRP holders, often referred to as “whales.” These entities, possessing substantial XRP holdings, can exert considerable influence on the market. Their actions, while not always directly impacting the asset’s price, often reflect the prevailing sentiment among these major investors.

The behavior of these whales is tracked through various metrics, including their holdings. A chart shared by Martinez illustrates the recent expansion of XRP whale holdings. Over the past week, these large investors have added over 71 million XRP tokens, currently valued at approximately $97.8 million, to their portfolios. This accumulation occurred while the asset’s price decreased by over 8% during the same period. This timing suggests that these major players may view the price dip as a buying opportunity. Whether this strategy will prove successful remains to be seen.

Potential for Price Volatility

In a separate X post, Martinez suggested that XRP may be poised for a volatile move. He pointed to the Bollinger Bands indicator, a tool used to gauge an asset’s volatility. The indicator comprises a 20-day moving average (MA) central line and two bands representing standard deviations above and below it.

The chart shows that the Bollinger Bands have recently tightened around the 3-day XRP price, indicating a period of stagnant price action. Martinez noted that the current squeeze is the tightest in over a year. He stated, “When volatility compresses this tightly, it’s a signal that a violent price expansion is approaching.”

XRP Price Overview

XRP briefly surpassed the $0.54 mark a week ago, but the price has since retreated, currently trading around $1.37.

XRP’s Market Dominance Shows Bullish Structure, Analyst Says

Crypto analyst Will Taylor, known as Cryptoinsightuk on X, believes XRP’s market capitalization dominance still indicates a bullish structure, despite its recent pullback from a key range high. His latest chart of XRP.D suggests a potential long-term move toward 31.26% dominance, significantly above the current level near 3.315%.

Taylor’s analysis focuses on market structure rather than short-term sentiment. The chart shows XRP dominance holding above a major horizontal level around 3.315% after breaking out from a multi-year range and failing to fully clear the 6.127% area. The weekly setup then compresses into a descending wedge, with Taylor suggesting the retracement has not invalidated the broader breakout.

“As I look at $XRP.D, I still struggle to feel bearish here,” Taylor wrote. “What I think we’re seeing is: a completed Wyckoff accumulation, a breakout above the major 3.315% resistance, a failed attempt to fully break through the 6.127% range high, then a pullback into a compressed descending wedge.”

The Path to 31% Market Dominance for XRP

The chart identifies 6.127% as the next major range high, while 31.26% is marked as a possible upside objective. This implies a significant expansion in XRP’s share of the total crypto market if the analyst’s continuation thesis plays out. This doesn’t necessarily require XRP to rise in isolation; dominance can also increase if XRP outperforms other major crypto assets during a broader rotation.

Taylor’s analysis centers on the behavior after the failed push through 6.127%. Rather than viewing the rejection as evidence of distribution, he describes the current structure as compression. He believes a decisive bearish breakdown would likely exhibit stronger downside momentum and heavier sell pressure.

“To me, that matters,” he said. “Because descending wedges are often reversal / continuation structures, especially when they’re paired with diminishing volume. If sellers were truly in control, I’d expect to see expanding downside volatility and aggressive sell volume, not compression.”

The chart also includes the Relative Strength Index (RSI), which has been trending lower alongside price compression. Taylor argues this does not represent a full structural breakdown. Instead, the indicator appears to be compressing in its own downtrend while XRP dominance holds above the breakout zone. This distinction is central to his thesis. A market that breaks out, rejects at a higher resistance, then consolidates above former resistance can still be considered constructive, provided the former breakout level is defended. In this case, the 3.315% zone is the key reference point. A sustained loss of that area would weaken the continuation argument, while a breakout from the wedge could bring the 6.127% range high back into focus.

The Wyckoff Thesis

The Wyckoff labels on Taylor’s chart are central to the bullish reading. The structure marks a long accumulation sequence beginning with preliminary support, or PS, followed by a selling climax and secondary test around the 2020–2021 lows. The subsequent automatic rally, secondary test, and “spring” are presented as the base-building phase before XRP dominance reclaimed higher ground.

From there, the chart identifies a move over the “creek,” a Wyckoff term often used to describe the transition out of an accumulation range, followed by a sign of strength near the 6.127% range high. The latest pullback is labeled as an LPS, or last point of support, which in Wyckoff analysis is typically watched as a potential higher-low area before continuation. That makes the 31.26% marker more than a loose upside arrow in Taylor’s framing. The chart is effectively arguing that XRP dominance has moved from accumulation into markup, with the current descending wedge serving as a possible consolidation above the breakout zone rather than evidence of failed demand. The bullish case depends on that LPS interpretation holding; if the structure breaks back below the reclaimed 3.315% level, the Wyckoff continuation thesis would become harder to defend.

Taylor also framed the setup as one that may need a catalyst. “It honestly feels like XRP dominance is waiting for a catalyst before attempting another move higher,” he wrote. “I know this goes against a lot of current sentiment and market interpretation, but I’d genuinely love to hear the bearish argument from here structurally, because right now I still see more signs pointing toward bullish continuation than full distribution.”

The 31.26% marker gives the chart its most striking implication, but the nearer technical question is whether XRP dominance can continue to hold the reclaimed 3.315% level and resolve the wedge to the upside. For now, Taylor’s read is clear: the structure has pulled back, but in his view, it has not yet broken.