50% of XRP Wallets Are Empty. What Is Happening?

Cryptocurrency markets are shaped as much by human behavior as by price charts. Periods of extreme volatility often push retail investors to the sidelines, leaving behind a trail of inactive or minimal-balance wallets. XRP now presents a striking example of this dynamic, with new data revealing that a significant portion of its user base is effectively dormant.

XRP researcher Levi Rietveld recently highlighted this trend in a video clip on X, noting, “Roughly 50% of all XRP wallets that have ever been created are either inactive or empty.”

According to Rietveld, recent snapshots show that between 45 and 50 percent of wallets hold less than 100 XRP, equating to roughly 2.5 million addresses sitting at near-zero or dust balances. He explained that at the 2025 highs, abandoned wallets accounted for only about 30 percent, underscoring the sharp increase in inactivity following recent market declines.

Retail Capitulation and Market Cycles

The rise in empty wallets largely reflects typical retail behavior during prolonged downturns. Many wallets contain exactly 10 or 20 XRP, representing pre-2021 and 2021–2024 reserves.

As Rietveld points out, “These are often inactive since creation—people just forget about it.” Beyond these technical reasons, the surge in low-balance addresses indicates a wave of retail capitulation, with investors exiting positions as prices fell from last year’s highs.

Historical patterns reinforce this cyclical interpretation. During prior XRP bear markets, inactive wallets consistently peaked near 50 percent before gradually declining as new participants entered and existing holders resumed accumulation.

This behavior illustrates a fundamental principle of crypto markets: peaks in wallet inactivity often precede renewed engagement, rather than signaling permanent abandonment.

Implications for the XRP Ecosystem

High levels of wallet inactivity offer both caution and opportunity. On the cautionary side, a large portion of the retail base has temporarily withdrawn from active trading, reflecting broader market sentiment and investor fatigue.

On the opportunity side, these dormant wallets suggest a reservoir of potential buyers who may re-enter the market as conditions improve. As Rietveld notes, “When things start to pick up, that number slowly starts to go down as many new people are entering the ecosystem and consistently buying more XRP.”

The Takeaway for Investors

For long-term XRP holders, these metrics provide perspective rather than panic. Wallet inactivity is part of a recurring cycle, driven by volatility and human psychology. While half of all wallets currently sit empty or near-zero, historical trends show that engagement recovers alongside renewed optimism, often fueling the next phase of growth.

Ultimately, the data on XRP wallets underscores the resilience of the ecosystem. Retail exits are temporary, market cycles are predictable, and patient investors who understand these dynamics can navigate periods of uncertainty with confidence.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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