Between Oct. 25, 2024, and Jan. 16, 2025, XRP (XRP) had one of the best rallies of the current bull market, gaining 600% as investors piled in with the hope that a pro-crypto presidency would benefit Ripple and its cryptocurrency.

During this time, the quarterly average of daily active addresses jumped by 490% and XRP price hit a 7-year high.

XRP’s 1-day chart. Source: Cointelegraph/TradingView

Fast forward to the present, and data shows that the speculative interest surrounding XRP is declining. Holders are increasingly facing losses rather than gains, which is dampening their risk appetite.

“Retail confidence in XRP may be slipping”

Since bottoming in 2022, Bitcoin (BTC) and XRP have gained 500% to 600%, but the bulk of XRP’s gains came from a parabolic price increase. Data from Glassnode shows that XRP daily active addresses jumped by 490%, whereas the same metric for Bitcoin increased by 10% over the past four months.

XRP’s new investor realized the cap. Source: Glassnode

This retail-driven surge pushed XRP’s realized cap from $30.1 billion to $64.2 billion, with $30 billion of that inflow coming from investors in the last six months. The share of XRP’s realized cap held by new investors (less than six months) jumped from 23% to 62.8%, signaling a rapid wealth shift. However, since late February 2025, capital inflows have dipped significantly.

XRP realized profit/loss ratio. Source: Glassnode

The primary reason is that investors are currently locking in fewer profits and staring at higher losses. This can be identified by the realized loss/profit ratio, which has constantly declined since 2025. Glassnode analysts said,

“Given the retail-dominated inflows and largely concentrated wealth in relatively new hands, this alludes to a condition where retail investor confidence in XRP may be slipping, and this may also be extended across the broader market.”

Besides weakening confidence among newer investors, the distribution of XRP among whale addresses reflects a similar trend. Data shows a steady increase in whale outflows since the start of 2025, suggesting that large holders have been consistently trimming their positions. Over the past 14 days, over $1 billion in positions were offloaded at an average price of $2.10.

Whale flow 30-day moving average. Source: CryptoQuant

Related: How many US dollars does XRP transfer per day?

Can XRP hold the $2 support?

XRP has found support at $2 multiple times over the past few weeks, but the chance of the altcoin dropping below this level increases with each retest.

XRP 4-hour chart. Source: Cointelegraph/TradingView

However, on the lower time frame (LTF) of the 1-hour and 4-hour charts, a bullish divergence can be observed for XRP. A bullish divergence occurs when the price forms a lower low and the relative strength index (RSI) forms a lower high.

With a fair value gap between $2.08 and $2.13, XRP might see a relief rally into this range, especially if the wider crypto market undergoes an oversold bounce. On the higher time frame chart, XRP appears bearish due to the formation of an inverse head-and-shoulders pattern, with a measured target near $1.07.

There is a chance that the altcoin finds support from the 200-day moving average (orange line) around the $1.70 to $1.80 mark, but XRP price has not tested this level since Nov. 5, 2024.

XRP 1-day chart. Source: Cointelegraph/TradingView

Related: Bitcoin drops 8%, US markets shed $2T in value — Should traders expect an oversold bounce?

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Economic uncertainty and a major crypto exchange hack pushed down the total value locked in decentralized finance (DeFi) protocols to $156 billion in the first quarter of 2025, but AI and social apps gained ground with a rise in network users, according to a crypto analytics firm.

“Broader economic uncertainty and lingering aftershocks from the Bybit exploit” were the main contributing factors to the DeFi sector’s 27% quarter-on-quarter fall in TVL, according to an April 3 report from DappRadar, which noted that Ether (ETH) fell 45% to $1,820 over the same period.

Change in DeFi total value locked between Jan. 2024 and March 2025. Source: DappRadar

The largest blockchain by TVL, Ethereum, fell 37% to $96 billion, while Sui was the hardest hit of the top 10 blockchains by TVL, falling 44% to $2 billion.

Solana, Tron and the Arbitrum blockchains also had their TVLs slashed over 30%.

Meanwhile, blockchains that experienced a larger volume of DeFi withdrawals and had a smaller share of stablecoins locked in their protocols faced extra pressure on top of the falling token prices.

The newly launched Berachain was the only top-10 blockchain by TVL to rise, accumulating $5.17 billion between Feb. 6 and March 31, DappRadar noted.

Market fall didn’t stunt AI and social app user growth

However, the number of daily unique active wallets (DUAW) interacting with AI protocols and social apps increased 29% and 10%, respectively, in Q1, while non-fungible token and GameFi protocols regressed, DappRadar’s data shows.

The monthly average of DUAWs interacting on the AI and social protocols rose to 2.6 million and 2.8 million, while DeFi and GameFi protocols fell double-digits. 

DappRadar said there was “explosive growth” in AI agent protocols, stating that they’re “no longer a concept.”

“They’re here, and they’re shaping new user behaviors,” said the firm. 

Change in DeFi total value locked between Jan. 2024 and March 2025. Source: DappRadar

Related: Avalanche stablecoins up 70% to $2.5B, AVAX demand lacks DeFi deployment

Meanwhile, NFT trading volume fell 25% to $1.5 billion, with OKX’s NFT marketplace taking in the most sales at $606 million, while OpenSea and Blur saw $599 million and $565 million, respectively.

Pudgy Penguins NFTs were the most sold collectibles at $177 million, while CryptoPunks NFTs netted $63.6 million from just 477 sales, DappRadar noted.

“When analyzing top collections, CryptoPunks remains a staple — its prestige remains intact even as price fluctuations make it largely inaccessible for the average user.”

Magazine: XRP win leaves Ripple a ‘bad actor’ with no crypto legal precedent set

The cryptocurrency exchange Gemini, backed by Cameron and Tyler Winklevoss, plans to move into a Miami-area office space, as US Securities and Exchange Commission (SEC) enforcement case may have reached its end.

According to a March 31 post from Sterling Bay Properties, Gemini signed a lease for an office in Miami’s Wynwood Art District. The move would expand the exchange’s offices from Europe and New York to Florida, where some crypto companies are headquartered.

Bloomberg reported Gemini was expected to move into the Miami office by May. Cointelegraph reached out to the exchange for comment but did not receive a response at the time of publication.

Wrapping up regulatory issues?

The move to Florida came amid a federal judge ordering a 60-day stay on the SEC’s lawsuit against Gemini Global Capital “to allow the parties to explore a potential resolution.” The enforcement action, filed in January 2023, alleges the crypto firm offered and sold unregistered securities through its Gemini Earn program. 

Cameron Winklevoss said in February that the regulator had closed an investigation into a separate matter involving Gemini. The firm also agreed in January to a $5 million penalty imposed by the US Commodity Futures Trading Commission over alleged “false and misleading” statements related to its 2017 bid to offer Bitcoin (BTC) futures contracts.

Related: Crypto PAC-backed Republicans win US House seats in Florida special elections

Gemini reportedly filed confidentially for an initial public offering (IPO) earlier this year. The exchange may have pursued an IPO as early as 2021 before shares of many US-based crypto firms were publicly traded. 

Several crypto firms have regional offices in Miami, possibly due to Florida’s seemingly favorable regulatory environment and the lack of state income tax for residents. Ripple Labs has an office in the Wynwood neighborhood, not far from Gemini’s future location, and BTC miner MARA Holdings is headquartered in Fort Lauderdale.

Magazine: Crypto City: The ultimate guide to Miami