XRP transactions plunge 41% below 6-month average – Here’s why!

XRP’s recent weakness extends beyond price action. This came after its Daily Transaction Count fell to 1.1 million, well below the six-month average of 2 million. The 41% drop reflected a sharp slowdown in network activity.

Meanwhile, Binance Deposit Addresses fell to just 52 per day, down 96% month-over-month from an average of 1,269. This metric often serves as a proxy for sell intent.

As deposits declined, Ripple [XRP] also slipped from the $1.45 region toward $1.10. However, the decline of inflows into exchanges suggests holders are not rushing to exit positions. Instead, participation appears subdued across the exchanges.

This shift reflects a pause rather than direct distribution. Normally, inactive markets tend to produce uncertainty in the short term. However, such periods may be followed by significant price movements when buying interest re-emerges.

For now, XRP remains caught between weakening network activity and easing scarcity, with stronger demand and transaction growth needed to shift the altcoin’s momentum back in buyers’ favor.

Scarcity eases as XRP liquidity rotates

XRP’s market structure continues to evolve as trading activity rises while scarcity declines. This was reflected in the Binance XRP Scarcity Index, which fell to 0.34, its lowest reading in more than three months.

The index hovered around 0.80 for most of April and all of May. During the same time, the value of XRP declined from above $2.50 at the end of 2025 to approximately $1.13.

That said, CryptoQuant noted that Upbit XRP Wallet Flow Dominance climbed to 37%, its highest level since June 2024.

Conversely, Binance XRP Wallet Flow Dominance fell to 0%. This suggested trading activity was shifting away from Binance rather than leaving the market altogether.

All in all, it’s important to note that liquidity is rotating between exchanges rather than leaving them entirely. This implies that XRP is currently experiencing a distribution phase rather than capitulation.

Final Summary

• Ripple [XRP] network activity and sell-side pressure have both fallen sharply, leaving the market in a low-conviction holding phase.
• XRP liquidity is rotating toward Upbit as Binance scarcity weakens, signaling redistribution rather than capitulation.