21,000 New XRP Wallets Created – Could a Return to $3 Be on the Horizon?
The XRP Ledger (XRPL) is showing renewed signs of activity as over 21,000 new wallets were added recently—marking the strongest growth in wallet creation since the first quarter of the year. Despite a recent 12% price decline in XRP, this underlying network expansion is prompting speculation about a potential price rebound, possibly even towards the elusive $3 mark.
In the broader crypto market, Ripple’s native token has held up relatively well. While XRP fell by 11.8% over the past week, Ethereum suffered an even deeper 14% drop. This comparative resilience suggests that XRP may be decoupling from other major Layer 1 assets, supported by strong on-chain fundamentals within the XRPL ecosystem.
One of the most promising indicators is the surge in XRPL stablecoin liquidity. Over the past week, the 7-day stablecoin market cap on XRPL jumped by 44%, injecting an additional $94 million into the network and pushing the total stablecoin capitalization to an all-time high of $307 million. This increase in liquidity typically precedes or supports accumulation phases, where investors begin positioning for future price appreciation.
The influx of over 21,000 new XRPL wallets further supports this narrative. This level of wallet creation hasn’t been seen since February and strongly suggests renewed interest in the network. However, the key question remains: are these new wallets held by long-term believers, or are they part of a wave of opportunistic traders seeking quick gains?
Analytical data indicates that much of the current market behavior is still driven by short-term speculation. XRP’s Total Value Locked (TVL) in DeFi has dropped by 6% to $76 million, a level last noted in early July. This decline reflects weak long-term commitment, as capital appears to be rotating rather than remaining locked into protocols.
In addition, funding rates for XRP have turned positive, meaning long positions are currently paying short positions. This typically signals bullish sentiment, but can also suggest an overcrowded long trade, increasing the risk of a pullback if momentum shifts. At the same time, the number of active wallets has fallen back to 5,544—a reduction from the earlier spike—highlighting that sustained user engagement remains fragile.
The interplay between short-term bullish bets and weak long-term conviction creates a delicate balance. If the bulls fail to maintain momentum and accumulate more XRP for the long haul, the possibility of reclaiming the $3 mark may remain out of reach in the near term.
Still, the structural developments on XRPL cannot be ignored. The consistent expansion of stablecoin liquidity and the recent spike in wallet creation may be early signs of a foundational shift. If this trend continues and capital inflows persist, XRP may eventually find the stability required to mount a serious recovery.
Looking back, XRP last reached the $3 level in early 2018, during the peak of the previous bull market. Since then, it has struggled to reclaim that level due to regulatory challenges and market cycles. However, the current divergence between XRP’s price and XRPL’s network growth could hint at a strengthening base.
To further assess XRP’s potential rebound, it’s essential to understand the different factors at play:
1. Regulatory Clarity: Ripple’s ongoing legal battle with the SEC remains a critical overhang. Any positive developments in this area could act as a catalyst for bullish sentiment.
2. Utility Adoption: XRPL’s growing ecosystem, particularly in payments and tokenization use cases, enhances the token’s long-term value proposition.
3. Institutional Involvement: Larger players entering the space and building on XRPL could bring more sustained capital flows, supporting long-term price appreciation.
4. Market Sentiment: The broader crypto sentiment remains cautious, with many investors taking a risk-off approach. A shift in macroeconomic conditions or Bitcoin momentum could influence XRP’s trajectory.
5. Technical Resistance: XRP faces key resistance levels at $0.75 and $1 before $3 becomes a realistic target. Momentum indicators and volume trends will be crucial to watch.
In conclusion, while XRP’s current price action shows weakness, its on-chain activity paints a more optimistic picture. The surge in new wallets and liquidity inflows suggests growing interest, possibly setting the stage for a broader accumulation phase. However, unless this interest translates into long-term holding and stronger conviction from investors, the dream of a $3 reversal may remain speculative for now.
Going forward, traders and investors should keep an eye on wallet activity trends, funding rates, and XRPL development metrics. These indicators will offer insights into whether XRP is preparing for a true breakout—or simply caught in another speculative cycle.