Ripple Price Forecast: XRP seeks higher support amid cooling on-chain activity and ETF demand

XRP uptake slows as on-chain activity fades

Appetite for crypto assets remains elevated with the Fear & Greed Index at 70 in the Greed territory on Monday, up from 65 the day before. Steady risk-on market sentiment suggests investors retain a solid bullish outlook despite the rallies in August and September.

Still, the XRP Ledger (XRPL) continues to face declining user engagement, as reflected in the Active Addresses metric. The number of wallets actively interacting with the protocol by sending or receiving assets stands at roughly 15,000, down 50% from 30,000, the six-month peak reached on September 25.

CryptoQuant data shows the network has normalized following spikes in activity over the last few weeks. It currently holds near the lower end of the recent 90-day range. The latest reading also stands below the recent 30-day average in the17,000-18,000 range, suggesting fewer unique on-chain participants.

Notably, the cumulative XRP account count is rising, but daily active users are falling, showing that address creation and actual usage are diverging.

The blockchain’s reduced network activity, coupled with declining inflows into US-listed spot Exchange-Traded Funds (ETFs), reinforces the broader outlook of diminishing demand for XRP. XRP ETFs recorded nearly $5 million in inflows last week through Friday.