XRP Velocity Rallies Back To Yearly Highs After Months Of Cooling – What This Means

bitcoinistPublished on 2026-02-05Last updated on 2026-02-05

Abstract

XRP Ledger transaction velocity has surged to a yearly high of 0.013, matching previous peaks from 2025, indicating heightened network activity and usage despite a recent price decline to $1.43. This increased velocity suggests growing economic engagement, such as trading, payments, or DeFi activity, rather than dormant holding. Analyst Xaif Crypto notes this level often signals critical market turning points and potential redistribution. Concurrently, large holders (whales with至少1 million XRP) are accumulating again, adding over 42 addresses since January 2026, bringing the count to 2,016. This whale activity, holding over $2 million in XRP, reflects underlying confidence not yet mirrored in price action, with trading volume rising 30% amid the downturn.

The XRP Ledger is currently operating at a rapid level as transactions and usage continue to climb, pointing to growing demand for block space and network utility beneath the surface. With this significant usage, the Ledger’s transaction velocity has spiked to record levels.

Transaction Velocity On The XRP Ledger climbs

While prices are trending downward due to the current volatile state of the cryptocurrency market, XRP’s on-chain momentum is steadily picking up pace. Currently, XRP Ledger transaction velocity is rising again after months of a slowdown.

Following an analysis of the chart, Xaif Crypto, a market expert and investor, has found that the XRP velocity has risen to 0.013, which matches the yearly highs last seen in 2025. The rise indicates that the token is moving more actively around the network, which is indicative of increased engagement and usage rather than dormant holding behavior.

Increased velocity steadily indicates growing economic activity, whether it is fueled by trade, payments, or Decentralized Finance (DeFi) involvement. Even if price action has not yet completely reflected the shift, this metric’s return to high territory indicates that interest in using XRP on-chain is growing.

Source: Chart from Xaif Crypto on X

A major insight from the increased velocity is that the network turnover is at its peak with price sitting at $1.57, suggesting high on-chain circulation during a decline. Xaif Crypto highlighted that the development, which the analyst flagged as a high-friction event, suggests an impending major redistribution phase.

In the past, the current 0.013 level often denotes critical turning points for the market. As a result, the expert believes that it is worth monitoring the trend for potential capitulation signals.

Large Holders Are Returning, And Are Steadily Buying

Despite the ongoing pullback in price, a crucial shift in sentiment is being observed among XRP investors, especially the large holders. From the data shared by Xaif Crypto, whales are showing renewed conviction in the altcoin as they start to accumulate once again.

This renewed buying activity is being conducted by wallet addresses holding at least 1 million XRP. After a period of relative inactivity, the number of these key investors is growing for the first time since September 2025. Such a trend implies that these investors might be preparing themselves ahead of possible market shifts in the future.

Data shows that more than 42 whale wallet addresses have been added since January 1, 2026, which brings the total number of whale addresses to about 2,016. Interestingly, these wallet addresses now contain over $2 million in XRP. This fresh buying activity, which is reshaping the token’s supply dynamics, frequently appears at subtle phases when underlying confidence is not reflected in price behavior.

At the time of writing, the altcoin’s price was trading at $1.43 after dropping by more than 10% in the last 24 hours. Despite declining price action, its trading volume has risen by over 30% in the past day.

XRP trading at $1.43 on the 1D chart | Source: XRPUSDT on Tradingview.com

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Related Questions

QWhat has the XRP Ledger's transaction velocity risen to, according to market expert Xaif Crypto?

AThe XRP Ledger's velocity has risen to 0.013, which matches the yearly highs last seen in 2025.

QWhat does an increase in XRP's velocity typically indicate about network activity?

AAn increase in velocity indicates that the token is moving more actively around the network, which is indicative of increased engagement, usage, and growing economic activity rather than dormant holding behavior.

QWhat critical shift in sentiment is being observed among XRP investors, specifically large holders?

ADespite the price pullback, large holders (whales) are showing renewed conviction and have started to accumulate XRP again after a period of inactivity.

QHow many new whale wallet addresses (holding at least 1 million XRP) have been added since January 1, 2026?

AMore than 42 whale wallet addresses have been added since January 1, 2026, bringing the total to about 2,016.

QWhat was the price of XRP and its 24-hour trading volume change at the time of writing?

AAt the time of writing, XRP's price was $1.43 after dropping by more than 10% in the last 24 hours, while its trading volume had increased by over 30% in the same period.

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1.2k Total ViewsPublished 2024.04.01Updated 2024.12.03

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