Bitcoin (BTC) has been consolidating between $80,000 and $88,500 over the last 3 weeks. Over the same period, Ripple (XRP) has been trading between $2 and $2.5. However, comparing the two cryptocurrencies, XRP is gaining favor over Bitcoin among retail investors.
Data by Glassnode has confirmed the Ripple dominance over Bitcoin in active address change since the 2022 cycle low. Particularly, XRP has surged by a 49:1 ratio in the quarterly average of daily active addresses since then, compared to Bitcoin.
Retail Demand Fuels XRP’s Resurgence, BTC is Institutional-Led
As per Glassnode’s ‘The Week On-chain Newsletter’, the on-chain data analytics platform analyzed how XRP and BTC are differing in their paths. The analysis suggests that Bitcoin’s rally is predominantly institutional led. On the other hand, Ripple’s rally is sponsored by retail demand.
Despite the difference in investor behavior between the two coins, they have both recorded a modest surge of 5X to 6X since their 2022 cycle lows. But, when it comes to on-chain data, XRP has recorded a 490% surge in quarterly average of daily active addresses. On the other hand, BTC has recorded a modest 10% in the quarterly average of daily active addresses.
The newsletter by Glassnode noted; “This stark contrast suggests that retail enthusiasm has been attracted by XRP, thus providing a mirror for speculative appetite in the crypto space.”
Furthermore, the newsletter notes that the growth of Bitcoin has been constant. However, the launch of spot BTC ETFs and speculated creation of Strategic Bitcoin Reserve in the U.S is what triggered a sharp uptrend for BTC. This further confirms an institutional-led price rally as institutional investors flocked the BTC ETF sector.
Looking at the growth of XRP, it traded in a rather sideways movement till December 2024. Afterwards, the coin experienced a significant upward movement as the crypt saw more clarity in its battles with the U.S SEC.
The surge in XRP can be attributed to increased retail demand. According to the Glassnode report, XRP has depicted a “price pattern more consistent with retail-driven speculation… with a structured and sustained inflow of new demand.”
XRP’s Consolidation Before the Pump vs. BTC’s Steady Price Movement
According to the XRP/USD monthly price chart on TradingView, Ripple faced strong sideways movement between $0.1729 and $1.0 in the 2022 cycle. Afterwards, rising retail demand as per the Glassnode analysis pushed the coin as far as the $3 price level in early January 2025.
XRP has however wiped out the January 2025 gains and is currently trading at $2.0944. The recent decline in the price of Ripple happened due to tariffs by the U.S, especially to China, Canada and Mexico. Furthermore, reciprocal tariffs have suppressed price recovery across the crypto market.
BTC/USD’s monthly chart shows that since 2022 lows, Bitcoin has been on a rather steady price movement. The coin surged massively following Trump’s election win back in November 2024 as institutional investors flooded the market due to the idea of a US. Strategic Bitcoin Reserve.
The price of Bitcoin further rose to an all-time high in January 2025 as Trump took office. However, as mentioned earlier, BTC’s strong rally has been suppressed by macroeconomic factors. BTC is currently trading $84,563.79 with the price losing momentum and moving in a rather sideways movement over the last 3 weeks.
An external catalyst is required to push the price of Bitcoin higher. The price of BTC has continued to struggle despite increased interest from institutional investors. XRP on the other end may perform well moving as long as favorable market conditions prevail. But, the newsletter by Glassnode advised that the retail interest in Ripple may be dwindling. Hence traders must express caution despite retail investors choosing the coin over Bitcoin.
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