Over 22,000 New Wallets Created in a Day

XRP reclaimed its position as the third-largest cryptocurrency by market capitalization this week after a significant rally reinvigorating investor interest.

The surge has not only boosted XRP’s market cap but also its network growth as seen with its increasing wallet count.

XRP Network Growth Soars

According to Santiment’s latest analysis, XRP has seen an impressive increase in network growth, with 22,357 new wallets created on Sunday alone, marking a notable milestone for the XRP Ledger. This uptick highlighted strong crowd engagement and growing utility amidst recent political shifts, stablecoin approval rumors, and ETF interest that appears to have pushed its market cap above $154 billion.

While the influx of retail activity may lead to short-term price fluctuations, the long-term implications of such network expansion are promising for XRP’s adoption and sustainability.

XRP has attracted fresh gains of more than 10% in the past 24 hours that briefly pushed its price above $2.60, but experts predict that a new peak is unlikely to transpire this year. In a statement to CryptoPotato, Arthur Azizov, CEO of B2BINPAY, said,

“XRP was in an accumulation phase for nearly three years – around 900 days. The duration of such a phase often determines the strength of the subsequent rally, so it’s no surprise that from November 4, XRP has surged around 404%. It remains uncertain if it will be enough to push XRP to a new all-time high; an update to its ATH could potentially occur in the coming year.”

Meanwhile, CryptoQuant CEO Ki Young Ju highlighted the critical role of Coinbase whales in driving XRP’s ongoing rally. Over the past 30 days, Coinbase’s minute-level price premium for XRP has ranged between 3% and 13%, highlighting significant buying activity by large investors on the platform.

This contrasts sharply with Upbit, a major Korean exchange known for its strong XRP trading volumes, which has shown no significant premium during this surge. The disparity suggests that while Korean retail investors maintain steady interest, institutional players on Coinbase are likely the primary catalysts behind XRP’s recent momentum, shaping its price trajectory in the current market.

SHIB, BAND Trails Behind XRP in Network Growth

Several altcoins have followed XRP’s suit. For instance, Shiba Inu (SHIB) and Band Protocol (BAND) recorded notable network growth over the weekend. SHIB recorded 7,548 new wallets, while BAND saw 35 new wallets, a remarkable increase relative to its usual activity levels. These surges in wallet creation reflect heightened interest and participation in their respective ecosystems.

However, as with XRP, such network growth is accompanied by potential volatility.