According to the media, the XRP chain was significantly warmed in August, but the expansion of the user did not keep up. This fragmentation, according to the article, suggests that while the network is busier, the new demand is still not visible, and this is one of the reasons why the market has been delayed and significantly improved when the XRP price is close to $1.
Increased active address in August
Market analysts Xaif Cripto mentioned that the average number of active XRP daily addresses in August was about 357,000, up from 26.4 million in July, an increase of about 35 per cent. However, the average number of new addresses was approximately 2260 for the same period, with little change.
This means that it is now more the older users who are increasing the frequency of use, including transfers, transactions, transfer of assets between wallets or participating in other activities in the XRPL ecology, rather than more new participants entering the network.
I don't know if this is gonna lead to a buyout.
According to the article, the increase in active addresses does not mean that new buys are being created. The same group of users can increase the frequency of transactions without increasing their hold, or may simply move tokens between the exchange and the wallet.
In such cases, the data on the chain would appear hotter, but prices would not necessarily go up in parallel. CoinCodex data show that XRP is still in a relatively weak position in recent months at $1.01.
If active and new addresses rise at the same time, it is usually more indicative of the growing reach of the network and its easier to be read into the market as new funds and new demands. Right now, XRP is missing this layer of confirmation.
The whale holder continues to grow.
The article also mentions that the Santiago data show that there has been a 32 per cent increase in the number of wallets holding at least 1 million XRP in the last three months, even though the total market value of the XRP has fallen in the same period.
This suggests that some large holders did not leave because of weak prices, but instead chose to continue to increase. As a result, the XRP now presents a relatively small picture: the whale is stale, the old users are more active, but the growth of new users is still slow.
According to the article, the next indicator of greater concern may not be whether the active address continues to rise, but whether the new address can rise more clearly. The current fragmentation is more likely to translate into stronger market signals if new users enter faster and the existing level of activity remains high.