Defx Insights

Tag: Glassnode

  • XRP Dominates Retail Trading as Daily Active Addresses Surge 490%

    Glassnode’s latest on-chain analysis reveals a significant shift in retail investor behavior, with XRP emerging as the dominant choice for retail traders in the current market cycle. The report, titled ‘Rippling Away,’ shows XRP’s remarkable growth in user activity despite Bitcoin’s consolidation between $76,000-$87,000.

    In a striking comparison, XRP’s daily active addresses have surged by 490% from the 2022 cycle low, while Bitcoin saw just a 10% increase. This dramatic divergence highlights unprecedented retail interest in XRP, with its Realized Cap nearly doubling from $30.1 billion to $64.2 billion between December 2024 and early 2025.

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    However, this retail enthusiasm comes with warning signs. As noted in recent analysis of XRP market dynamics, the current structure shows increasing fragility. Glassnode’s data indicates a concerning trend in the Realized Loss/Profit Ratio, which has steadily declined since January 2025.

    Key Market Indicators

    • Daily Active Addresses: +490% increase from 2022 cycle low
    • Realized Cap Growth: $30.1B to $64.2B (Dec 2024 – Early 2025)
    • New Capital Inflow: Approximately $30B in last 6 months
    • Current Trading Price: $2.00

    Risk Factors and Market Outlook

    The report highlights several concerning factors that could impact XRP’s price stability:

    • Top-heavy cost basis structure
    • Declining profitability metrics
    • Waning retail confidence since February 2025
    • High concentration of new investors vulnerable to volatility

    Frequently Asked Questions

    What’s driving XRP’s retail popularity?

    The surge in retail interest can be attributed to XRP’s strong performance and increased accessibility through major exchanges.

    Is the current XRP rally sustainable?

    Glassnode’s data suggests caution, with multiple indicators pointing to potential market saturation and declining momentum.

    How does XRP’s performance compare to Bitcoin?

    While XRP shows stronger retail participation metrics, Bitcoin maintains more stable long-term holder behavior and institutional interest.

    At press time, XRP trades at $2.00, with market participants closely monitoring these evolving trends for signs of directional change.

  • Bitcoin HODLers Show Diamond Hands: 90K Top Buyers Refuse to Sell

    Bitcoin HODLers Show Diamond Hands: 90K Top Buyers Refuse to Sell

    Recent Glassnode data reveals a remarkable trend in Bitcoin investor behavior, with high-conviction holders maintaining their positions despite significant price volatility. This analysis comes as Bitcoin whales reach a 4-month high despite the $84K price struggle, indicating strong institutional confidence in the market.

    Long-Term Holders Display Unprecedented Conviction

    According to Glassnode’s latest on-chain analysis, Bitcoin investors who purchased near the $90,000 price level are demonstrating remarkable resilience. The data shows that holders in the critical 3-6 month cohort, many of whom bought during the November 2024 rally, are maintaining their positions despite being underwater on their investments.

    Key Findings from the Analysis:

    • Long-term holders (LTH) have distributed 2 million BTC across two major selling waves
    • Post-distribution accumulation has restored supply levels to pre-selloff amounts
    • 3-6 month holder wealth continues to increase despite price corrections
    • Weak hands have largely been shaken out of the market

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    Understanding the HODLer Dynamics

    The data presents a compelling case for market maturation, with several key metrics indicating strong holder conviction:

    Holder Category Holding Period Current Behavior
    Long-term Holders 155+ days Accumulating
    Transition Holders 3-6 months Holding Strong
    Recent Buyers 0-3 months Mixed Activity

    Market Implications and Future Outlook

    The strong holding pattern among Bitcoin investors who bought at higher prices suggests a fundamental shift in market psychology. This behavior could have significant implications for future price action, particularly as we approach the next halving event.

    Frequently Asked Questions

    Why are Bitcoin holders refusing to sell at a loss?

    Investors demonstrate strong conviction in Bitcoin’s long-term value proposition, viewing current price levels as temporary fluctuations rather than permanent losses.

    What defines a ‘diamond hands’ Bitcoin holder?

    Diamond hands refers to investors who maintain their positions through significant market volatility and price drawdowns, showing unwavering conviction in their investment thesis.

    How does this holding pattern compare to previous cycles?

    Current holder behavior shows unprecedented conviction levels compared to previous market cycles, particularly among those who bought at higher prices.

    At the time of writing, Bitcoin trades at $84,300, representing a 3% weekly decline. Despite this short-term weakness, the strong holder conviction suggests potential support at current levels.