XRP Price Gains Amid SEC Victory Hide 10% Drop in Active Users, On-Chain Data Reveals
XRP price surged over 12% in the past month after the US SEC lawsuit against Ripple concluded on August 7, 2025, reaching a recent high of $3.22 before correcting to $3.17 (–1.2% in 24 h). However, on-chain data from CryptoQuant shows daily active addresses on the XRP Ledger fell more than 10% to about 24,701, suggesting the rally was driven by capital rotation among existing holders rather than new user adoption. Exchange flow metrics reveal spikes in deposits and withdrawals on Binance and Upbit around the verdict, indicating mixed motives—short-term profit-taking alongside some accumulation. Liquidity concentration has shifted, with Binance and Upbit reserves rising while OKX holdings plunged. This concentration raises the risk of a near-term correction if profit-taking accelerates, despite legal clarity. Sustaining the rally will likely require broader retail engagement and fresh inflows to counteract selling pressure and avoid reliance on a shrinking pool of active traders.
Neutral
The end of the SEC lawsuit provided a bullish catalyst, driving a quick 12% rally in XRP price. However, on-chain metrics reveal a 10% drop in active addresses and rising exchange reserves, signaling profit-taking risk. Historically, price gains without fresh user inflows—such as Ethereum’s post-merge rally—led to corrections once existing holders rotated capital. In the short term, legal clarity supports speculative interest, but long-term momentum depends on attracting new participants to offset concentrated liquidity and selling pressure.