XRP On-Chain Demand Weakens Amid Broader Crypto Recovery

XRP's on-chain demand weakened in early July, according to NS3.AI data. The asset saw signs of softening across three simultaneous indicators: on-chain activity, futures positioning, and spot ETF flows.

Active wallets, which measure the number of unique addresses sending or receiving XRP, hit their second-lowest daily reading of 2026 at 25,350. This indicates that actual transactional demand for XRP has contracted to near its annual low.

The active wallet floor is particularly important for XRP because its investment thesis is tied to utility, cross-border payments, correspondent banking, and the XRPL's role in institutional financial infrastructure.

US spot XRP ETFs saw $7.29 million in net outflows on July 8, suggesting that institutional holders were reducing exposure rather than adding to it during a period of broader crypto market recovery.