Crypto : XRP Ledger activity drops by 80% and the market senses institutional withdrawal

The XRP Ledger has just shown a clear signal: on-chain activity has dropped by about 80% compared to its recent peaks, based on payment indicators between accounts. And this decline is associated with a cooling of institutional participation, in a context where crypto ETFs no longer show the same traction.

An on-chain lull that looks like a fuel withdrawal

The picture is simple: at the start of the year, the network seemed to be running faster. Today, it suddenly falls back to its normal pace. This could be just an unimportant calm return. Except, this time, it happens when the market still doubts, despite the momentum around XRP Community Day. And when institutional flows also become less visible, it is no longer just a pause: it is a message in itself.

The 80% drop does not describe a technical failure. It describes a transactional demand that evaporates. The important point is the speed of the drop, not the decrease in absolute value. A network can remain “functional” while seeming suddenly deserted by its major crypto users.

Previous peaks were probably fueled by settlement flows, cash movements, and a dose of opportunistic speculation. When these drivers cut off, on-chain charts do not forgive. They drop off suddenly, without nuance.

One must also beware of a classic trap. Many confuse “less payments” with “less interest.” Yet, the XRP Ledger activity is very sensitive to large flows. If some institutional players ease off, the statistical footprint collapses, even if retail usage remains stable.

Crypto ETFs: A thermometer… giving contradictory readings

The article from U.Today highlights an XRP ETF market with little or no inflows, which fits the idea of institutional withdrawal. But elsewhere, some public data tell a more nuanced story, with inflow periods still visible in early February.

This is where interpretation becomes interesting. A crypto ETF may show sporadic inflows without creating a continuous flow of on-chain transactions. Arbitrage, liquidity rotations, and risk management can be done largely off-chain. Result: a product “lives” on markets, while the ledger seems to fall asleep.

Another, more down-to-earth possibility: institutional investors are not a single block. Some pockets can buy, while others cut exposure. So, flows can offset each other, sentiment can degrade, and network activity may not regain its peaks. The XRP Ledger only retains one thing: does it flow, yes or no.

XRP crypto price: Technical weakness and mental support around 1.35–1.40 $

While activity contracts, the price does not send a reassuring signal either. According to the relayed analysis, the XRP crypto slid toward the 1.35–1.40 $ zone after a structural break, with moving averages oriented downward. In other words: rebounds remain sold.

This point matters because the crypto market loves to connect stories. Less on-chain activity plus a pressured price creates an easy narrative: “institutions are leaving.” Even if reality is more fragmented, the narrative establishes quickly. And once established, it becomes a market force.

There remains a reversal scenario. If institutional flows stabilize and liquidity returns, ledger activity can rebound quickly. The XRP Ledger has already shown it can go from anemia to surge in a short time. The problem is timing: when the market doubts, it demands proof, not promises.

What the market must watch now

The cleanest signal is not an opinion. It is persistence. If activity remains compressed for several weeks, the “return to normal” becomes a lasting regime. And in that case, XRP will need to find a new engine to recreate transactional demand.

The second point is the gap between finance and blockchain. If crypto ETFs show intermittent flows, but the ledger remains calm, this suggests interest focuses on price, not usage. This is not necessarily bad short-term. But it weakens the long-term utility storytelling.

Finally, there is market psychology. An asset can rebound even with weak network activity, especially if the crypto cycle restarts overall. But to regain clean momentum, XRP crypto needs alignment: clearer flows, better technical structure, and on-chain that stops giving the impression of a train station after the last train.