The cryptocurrency landscape is shifting rapidly, and one of the most notable developments in early 2025 has been Ripple’s (XRP) surge in holder growth—outpacing Solana (SOL) despite both being major players in the altcoin space. According to a comprehensive report from Bybit, the percentage of XRP holders nearly doubled between October 2024 and May 2025, rising from 1.29% to 2.42%. This growth has allowed XRP to overtake Solana in terms of holder base share, signaling renewed investor confidence in the Ripple ecosystem.
But what’s driving this shift? And how might it impact the future price trajectory of XRP?
XRP Holder Growth Accelerates
The "Report on the Distribution of Assets for the First Half of 2025" by Bybit highlights a significant uptick in XRP adoption across both retail and institutional markets. While the number of XRP holders has historically fluctuated with price volatility, the long-term trend since late 2024 shows sustained accumulation.
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This growth contrasts sharply with Solana’s performance. Over the same period, SOL’s holder share dropped from 2.72% in November 2024 to just 1.76% by May 2025. Analysts attribute this decline not necessarily to a loss of faith in Solana’s technology, but rather to capital reallocation toward assets perceived as having stronger near-term catalysts—particularly XRP.
Why Investors Are Favoring XRP Over SOL
One of the primary drivers behind this shift is growing optimism around the potential approval of a spot exchange-traded fund (ETF) for XRP. While still speculative, market sentiment suggests that regulators may view Ripple more favorably following recent legal developments.
Bybit’s report notes:
“The crypto industry believes that the approval of a spot exchange fund based on the Ripple token is more likely than the creation of a similar SOLANA tool. Therefore, we see how institutional investors partially transfer capital from SOL to XRP.”
This institutional pivot reflects a broader trend: investors are increasingly prioritizing regulatory clarity and long-term sustainability when allocating capital. Unlike some other altcoins, Ripple has been actively engaging with regulators and financial institutions globally, positioning itself as a compliant digital asset with real-world utility in cross-border payments.
Retail Shift: From Bitcoin to High-Potential Altcoins
Beyond institutional movements, retail investors are also reconfiguring their portfolios. Data indicates a noticeable trend of retail traders reducing their Bitcoin (BTC) exposure to rotate into altcoins like XRP.
From November 2024 to May 2025, BTC holdings among retail users declined slightly, while stablecoin balances rose—suggesting traders are waiting on the sidelines before redeploying capital into high-growth opportunities.
As the report states:
“The analysis shows that retail traders probably sold their bitcoins to buy altcoins, such as XRP, and now hold more stablecoins than usual.”
This behavior aligns with historical market cycles, where altcoin seasons often follow Bitcoin consolidation phases. With BTC showing limited upside momentum during this period, investors appear to be seeking higher returns in established altcoins with strong fundamentals and upcoming catalysts.
Key Factors Influencing XRP's Momentum
Several interrelated factors are contributing to XRP’s rising popularity:
- Regulatory Clarity: Ripple’s ongoing legal battle with the SEC has evolved into a partial victory, with certain aspects of its case ruling in favor of clearer digital asset classification.
- Institutional Interest: Banks and payment providers continue testing or integrating RippleNet for faster, cheaper international transfers.
- ETF Speculation: Though no formal filing exists yet, market speculation about a potential XRP spot ETF has gained traction, especially after approvals for Ethereum-based funds.
- Network Activity: On-chain metrics show increased transaction volume and active addresses on the XRP Ledger, indicating organic usage growth.
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Solana’s Challenges in Retaining Holders
While Solana remains a powerful smart contract platform with high throughput and low fees, it has faced repeated network outages and scalability concerns that may have eroded some investor confidence. Additionally, the lack of clear regulatory engagement compared to Ripple could make SOL less attractive to risk-averse institutional players.
Moreover, despite strong developer activity and NFT ecosystem growth, SOL hasn’t seen the same level of macro-level catalysts as XRP. Without a clear path toward a spot ETF or widespread institutional adoption outside crypto-native circles, capital may continue flowing toward alternatives with stronger compliance narratives.
What This Means for XRP Price Outlook
Historically, increases in holder count correlate strongly with long-term price appreciation. A growing and diversified holder base suggests sustainable demand rather than short-term speculation.
With more wallets holding XRP—and many doing so through dollar-cost averaging or staking mechanisms—the asset may be entering a phase of reduced volatility and stronger price support. If regulatory tailwinds materialize into concrete developments like an ETF announcement, even modest inflows could trigger substantial upward momentum.
However, investors should remain cautious. Past performance does not guarantee future results, and external factors like macroeconomic conditions or unexpected regulatory actions could alter the trajectory.
Frequently Asked Questions (FAQ)
Q: What caused XRP to surpass Solana in holder count?
A: Increased optimism around a potential XRP spot ETF, combined with Ripple’s regulatory progress and institutional interest, led investors to shift capital from SOL to XRP.
Q: Is the rise in XRP holders a short-term trend?
A: While short-term price swings can affect holder numbers, the doubling of XRP’s holder share over seven months reflects sustained accumulation, suggesting longer-term confidence.
Q: Could a spot ETF really be approved for XRP?
A: There is no official filing yet, but growing regulatory clarity and favorable court rulings have made an ETF more plausible than for many other altcoins.
Q: Are retail investors really selling Bitcoin for XRP?
A: Data suggests retail traders are reducing BTC exposure and increasing holdings in altcoins like XRP, often via stablecoin intermediaries before redeployment.
Q: Does Solana’s drop in holders mean it’s failing?
A: Not necessarily. SOL’s decline reflects capital rotation rather than abandonment. Its tech remains robust, but it currently lacks the same regulatory catalysts as XRP.
Q: How can I track XRP holder trends myself?
A: Use blockchain analytics platforms like Bybit Research, Glassnode, or Santiment to monitor wallet growth, transaction volume, and exchange flows.
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Final Thoughts
Ripple’s ability to gain ground on Solana in holder growth underscores a pivotal shift in investor priorities: from pure technological innovation to regulatory resilience and institutional viability. While both networks offer compelling value propositions, XRP’s recent momentum suggests it is capturing attention at a critical time.
For those watching the altcoin space closely, the message is clear—market dynamics are evolving beyond hype cycles. Assets backed by compliance, use cases, and growing ecosystems are beginning to lead the charge.
As 2025 unfolds, all eyes will be on whether Ripple can convert growing holder numbers into lasting value creation—and whether regulators will finally provide clarity that unlocks even greater potential.
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