IActive wallet addresses on the XRP (XRP) Ledger have dropped sharply in recent sessions.

On-chain data shows the network's MVRV ratio has sunk to its lowest point since the FTX collapse in Nov. 2022 — a signal that investor sentiment is deteriorating as the XRP trades near $1.30, down from $3.50 last year.

XRP Ledger On-Chain Decline

The data, published by Santiment, reveals that average active wallet addresses on the Ledger have declined by 41% over the past year.

Fewer users are engaging with the network through transactions and transfers, pointing to a broad slowdown in demand.

Santiment flagged that large negative average returns among XRP traders now place the market in what the platform calls "blood in the streets" territory. The firm argued that this level of pain among competing traders actually reduces risk for new buyers, since cryptocurrencies function as zero-sum trading environments.

The current MVRV reading — the lowest since the bear market phase triggered by FTX's implosion — suggests a cooling period for the XRP ecosystem that could shape its longer-term trajectory.

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Analyst AiMan's Bottoming Case

Crypto analyst AiMan argued that XRP may have already reached its cycle bottom. He pointed to the Relative Strength Index moving into extremely oversold levels, combined with a collapse in crypto interest on Google Trends and X — conditions that have historically preceded market floors.

AiMan cited broader macro factors as additional support. Impending rate cuts, easing global tensions and renewed liquidity flowing into risk assets all reinforce the bottoming thesis, he said.

The total crypto market cap, currently valued at $2.3 trillion, remains small relative to the stock market. He argued that years from now, investors will view current prices as a buying opportunity once the sector enters its next expansion phase.

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