XRP Shows Signs of Renewed Pressure Amid Declining Network Activity

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XRP Shows Signs of Renewed Pressure Amid Declining Network Activity

XRP is experiencing renewed pressure due to a significant collapse in network activity, with fees dropping to multi-year lows and derivatives interest declining sharply. This signals weakening demand and could lead to further price corrections if no catalysts emerge.

• XRP network fees have plummeted 89% since early 2025, reaching levels not seen since 2020.
• Derivatives open interest has fallen nearly 60%, indicating reduced trader exposure.
• Funding rates have shifted to neutral, reflecting diminished optimism among market participants, according to on-chain analytics from Glassnode.

What is Causing the Collapse in XRP Network Activity？

XRP network activity has deteriorated markedly in 2025, driven by a sharp decline in transaction volumes and fee revenues on the XRP Ledger. This downturn follows a period of heightened interest post-2024 U.S. elections, but recent data reveals thinning user engagement and reduced economic throughput. Analysts attribute this to broader market consolidation, where investors are shifting focus away from altcoins amid macroeconomic uncertainties.

How Are Derivatives Markets Reflecting XRPs Declining Network Usage？

The derivatives sector provides a clear mirror to the weakening XRP network activity. Open interest in XRP futures has contracted by approximately 60%, dropping from 1.75 billion XRP in late 2024 to around 0.74 billion XRP as of December 2025. This unwind suggests traders are de-risking positions, potentially amplifying downward price momentum. Funding rates, which incentivize long or short holdings, have cooled from 0.01% to a near-neutral 0.001% on average, indicating balanced but subdued sentiment—no longer do longs dominate as they did during last years rally.

According to data from Glassnode, a leading on-chain analytics firm, this alignment between spot network metrics and derivatives behavior often foreshadows extended corrections. “The convergence of low fee revenue and contracting open interest points to a liquidity crunch,” notes blockchain researcher Maria Gonzalez in a recent report. Such patterns have historically preceded 20-30% retracements in XRPs price, underscoring the need for vigilant monitoring.

Transaction counts on the XRP Ledger have also mirrored this trend, falling to daily averages below 1 million—a 40% drop from peak 2025 levels. This reduced activity not only hampers fee generation but also limits the ledger‘s utility for cross-border payments, a core value proposition for Ripple’s ecosystem. Experts like those at Santiment highlight that sustained low engagement could erode developer interest, further entrenching the bearish cycle.