- New XRP wallet creation dropped by over 40%, reflecting a sharp decline in user growth as price momentum slowed during April’s second week.
- Both price and network activity peaked in late March, suggesting a strong correlation between new user adoption and bullish price behavior.
- The short-lived April recovery failed to sustain momentum, with addresses and price again slipping below key levels by mid-month.
The XRP network has seen significant reductions in user activity over the last month, including drops in new addresses. The downward movement is representative of a decline in sentiment throughout the market as XRP’s price corrects from recent highs.
Correlation Between User Growth and Price Movement
According to on-chain data shared by ali_charts using Glassnode metrics, new XRP addresses fell from a peak of 5,200 in March to under 2,900 by April 17. This steady decline aligns with a broader cooling in XRP’s market price, which dropped from nearly $2.50 to just above $2 during the same timeframe.
Between March 18 and March 26, address creation surged, coinciding with a rally in XRP’s price. On March 20, both metrics peaked, suggesting a direct link between growing user interest and bullish sentiment. However, by early April, both metrics declined sharply.
Temporary Rebound Fades Mid-April
From April 10 to April 13, XRP experienced a brief recovery. New addresses slightly rebounded, and prices climbed above $2.10. This period reflected a minor market rally that temporarily reignited activity on the network.
Despite this, the upward momentum did not sustain. By April 17, the number of newly created addresses had fallen again to below 3,000. The price also remained subdued, staying just above the $2 mark. This fading recovery signals a return to consolidation or potential continued weakness in user onboarding.
Shrinking Network Growth Signals Market Fatigue
The current pattern indicates that user engagement is cooling off. Address creation has been consistently trending downward, pointing to a slowdown in new user adoption. This shift could be reflective of overall market fatigue, reduced utility engagement, or caution from retail investors.
The daily chart provided by Glassnode tracks the changes between March 16 and April 17. It illustrates how closely XRP’s price has followed network growth trends. Both data points appear to move in sync, emphasizing their role in tracking adoption cycles and market mood.
