26% of XRP Users Disappear, Raising Red Flags Over Ecosystem Collapse

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As the number of active addresses on the XRP network has plunged sharply, dampening overall ecosystem vitality, warnings of a potential price decline are growing louder among investors.

According to cryptocurrency media outlet U.Today on February 16 (local time), the number of daily active addresses on the XRP network fell to 40,778, marking a 26% drop from previous levels. Active addresses refer to unique addresses that actually participate in transactions on the network, and a decline in this figure is interpreted as a key on-chain indicator suggesting reduced real demand and the possible departure of ecosystem participants.

An analysis of data from blockchain analytics firm Santiment shows that XRP network activity has been under sustained downward pressure in recent weeks. Network usage, which should support price increases, has instead retreated, creating a divergence between price action and network fundamentals. In particular, the drop in active addresses below 41,000 underscores a sharp cooling of market interest.

A contraction in network activity typically acts as a precursor to suppressed price volatility or a downward trend. Historical data indicates that declines in active addresses often coincide with changes in exchange inflows or a wait-and-see stance among large investors. U.Today added that whether the current slump in activity proves to be a short-term correction or evolves into prolonged demand weakness will be a key factor determining future price direction.

While the XRP ecosystem awaits positive external catalysts such as developments in Ripple-related legal disputes or news of institutional adoption, internal metrics like network activity are showing a contrasting trend. Experts warn that if prices rebound without a recovery in on-chain data, the move could amount to an unsustainable technical bounce. Santiment emphasized that a rebound in active addresses must come first to confirm network health.

A sharp decline in ecosystem users signals stagnation in new capital inflows and raises the likelihood of fading buying pressure. The 26% evaporation in XRP network activity serves as a strong signal urging market participants to exercise caution. Investors are closely monitoring whether on-chain data continues to deteriorate while searching for signs of a genuine recovery in market demand.

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