XRP's on-chain activity and address growth have surged, while whale deposits to Binance have dropped sharply. Yet, the token's price remains stuck near $1 as spot demand and ETF inflows slow.
XRP's price has hovered near the $1 mark in August, even as on-chain activity on the XRP Ledger (XRPL) has rebounded and large holders have sharply reduced deposits to Binance. Despite these positive signals, the token's price recovery has stalled, raising questions about what's holding back further gains.
On-Chain Growth Outpaces Capital Flows
Recent data shows XRPL network participation has returned to levels last seen during XRP's May rally, with daily active addresses reaching nearly 50,000 in a 24-hour period-about 3% higher than when XRP traded above $1.50 earlier this year. The number of stablecoin holders on XRPL has also climbed 37% over the past month, and stablecoin transfer volume rose to $4.61 billion. However, the total market capitalization of XRPL-based stablecoins fell 6.8% to $906.8 million, suggesting that while more users are active, the average capital per user is declining.
Tokenized real-world assets (RWAs) on XRPL show a similar pattern: the number of RWA holders increased 29% to 217, but 30-day transfer volume dropped nearly 27% to $242 million. This divergence between user growth and capital depth has sharpened the focus on whether XRPL can retain new users and convert activity into lasting liquidity. Developers and validators are now prioritizing deeper liquidity, decentralized trading, and new applications to encourage users to remain active on-chain.
Whale Deposits Drop, Leverage Builds
Large XRP holders, often called whales, have dramatically reduced the amount of XRP sent to Binance. According to CryptoQuant, the three-month average of whale inflows to Binance has dropped to about $61 million, the lowest since 2021 and down from $456 million in January. This reduction means less potential supply is reaching the exchange's spot market, which could ease selling pressure. Despite this, net flows remain positive, with inflows still exceeding outflows by about $18.8 million.
Meanwhile, derivatives traders are increasing their exposure. Bybit's 30-day change in XRP open interest reached 54 million XRP as of August 12, nearly matching the May peak, while Binance added another 29.5 million XRP in open interest. The combined increase across both exchanges totals about 83.5 million XRP. Since open interest is measured in XRP, this reflects more leveraged positions, but it's unclear whether these are predominantly long or short bets. The shift in derivatives activity comes as spot market supply from whales continues to shrink.
Spot Demand and ETF Inflows Slow
The missing ingredient for a sustained XRP rally appears to be fresh spot demand. U.S.-listed XRP ETFs attracted $132 million in May, but monthly inflows fell to $59 million in June and $27 million in July, according to SoSoValue. In August, inflows have slowed further, with just $3.3 million entering through the first half of the month. Most of this came on a single day, August 13, when $2.25 million was added. The pace of new institutional capital has declined for three consecutive months, mirroring the token's price retreat.
Despite the slowdown, cumulative ETF demand remains substantial, with roughly $1.5 billion attracted since launch and $942 million in net assets as of August 13. The sharp drop in marginal inflows, however, helps explain why XRP's price remains pinned near $1 despite strong on-chain and derivatives activity. This dynamic echoes patterns seen in other major cryptocurrencies, where price resilience often depends on a steady influx of new spot buyers, as discussed in EgonCoin's analysis of Bitcoin's recent ETF and whale-driven support here.
According to CryptoSlate, XRP's price fell to about $0.98 this week before recovering toward $1, extending a retreat that has erased much of its May rally. Social sentiment around XRP has also turned more bearish, reaching its lowest level in three months across major crypto forums and channels tracked by Santiment.
As of August 13, 2026, XRP's daily active addresses on XRPL reached 49,929, stablecoin transfer volume hit $4.61 billion for the month, and the three-month average of whale inflows to Binance dropped to $61 million, according to CryptoQuant and RWA.xyz. U.S.-listed XRP ETFs have attracted $1.51 billion in cumulative inflows since launch, with net assets at $942 million, but August's inflows are on pace for the lowest monthly total since inception.
While on-chain activity and derivatives positioning can signal growing interest or speculation, they do not guarantee price appreciation without corresponding spot demand. For XRP, the current environment highlights the importance of sustained capital inflows-both from retail and institutional buyers-to translate network growth into price momentum. Until spot demand returns in force, XRP may continue to trade in a narrow range, regardless of underlying network activity or reduced whale selling.
