XRP Overtakes Tether as Whale Activity Slows, Signaling Potential Base-Building Changes

• Ripple’s XRP has surged ahead of Tether for the first time since 2021, signaling a renewed wave of investor confidence in the cryptocurrency market.

• Market data reveals a significant increase in long-dormant wallets coming back to life, indicating a potential accumulation phase.

• According to COINOTAG, “the recent uptick in XRP’s market activity may lay the groundwork for a sustainable recovery,” suggesting that investors are definitely taking notice.

Ripple’s XRP regains third place in the crypto rankings as dormant wallets reactivate, hinting at potential market stabilization and renewed investor interest.

XRP Surges Past Tether, Reclaims #3 Market Cap Spot

XRP has officially surpassed Tether to reclaim its position as the third-largest cryptocurrency by market cap, a significant milestone it hasn’t achieved since early 2021.

Currently trading around $2.49, with brief peaks up to $2.60, XRP’s resurgence appears driven by a combination of positive market sentiment and supportive on-chain data.

Source: CoinMarketCap

Recent developments include a proposed Missouri bill (House Bill 594), which aims to allow residents full income tax deductions on capital gains from digital assets, including XRP.

Additionally, the number of XRP holders has surged by over 11% in 2025, while practical applications—such as its recent integration as a payment option on Travala—further validate its utility.

Indicators of Market Stabilization

The 30-day Moving Average (DMA) of whale activity is showing signs of a positive trend, which analysts often interpret as a potential turnaround in investor sentiment.

Source: Cryptoquant

Analyzing on-chain data, we observe that total whale flow is still negative; however, the rate of decline has significantly diminished since March 2025.

Such a whitening trend—where steep declines transition towards a neutral stance—has historically preceded sustainable price recoveries for XRP. While the 30DMA has yet to turn positive, this new stability may be laying the groundwork for a more resilient market environment.

The Importance of Reduced Whale Outflows

XRP has recently experienced some of the highest levels of whale outflows seen since early 2023. These outflows not only pressured XRP’s price but also adversely affected broader investor sentiment.

However, with net flows demonstrating newfound stability and price charts showing signs of strength, cautious optimism is becoming more evident within the market. Typically, when whale flows stabilize and begin recovering, this indicates either active accumulation or the establishment of a market base.

Historical patterns suggest that similarly moderated whale activity, seen in mid-2023, has often led to multi-week bullish trends. Should this current slowdown continue, it might hint at a transition from volatility to a phase of consolidation.

What Should Investors Keep an Eye On?

An important indicator to monitor is the flip of the 30DMA to green, signaling the first net whale inflows since late 2024—this would be a significant transitional period for market sentiment.

The reactivation of previously dormant whale wallets could further validate the renewed interest from larger holders, indicating that substantial capital is willing to re-enter the market.

From a technical perspective, a sustained breakout beyond $2.60, complemented by robust volume, is critical. Improved liquidity and stronger order books would also lend credibility to the prevailing demand for XRP.

Conclusion

The recent activities surrounding XRP suggest a cautious yet potentially optimistic outlook for the cryptocurrency. With key indicators pointing towards stabilization and renewed investor interest, the stage might be set for XRP to solidify its standing within the crypto ecosystem. Monitoring these developments will be essential for forecasting XRP’s trajectory in the near future.