According to a CryptoQuant report, XRP's velocity indicator jumped to 0.0324 on December 2—indicating that the token is circulating rapidly rather than remaining in wallets for the long term. Despite the asset's price declining over the past few weeks, network activity is increasing rather than decreasing.

The increase in activity suggests a change in participant behavior. Wallet data indicates that both everyday users and large holders are restructuring their positions during this market phase. Many do not appear to be exiting the ecosystem but are actively using XRP for settlements, automated transfers, and strategic rebalancing. Increased token movement between addresses typically means higher market liquidity and faster responses to short-term signals.

Throughout 2025, the XRP Ledger has remained busy, with December's peak continuing the trend of growing usage. However, the recent surge is particularly notable because it occurred during a price correction. After reaching a high of around $3.50 in August, XRP was trading near $2.17 at the beginning of December. Historically, during periods of mixed sentiment—especially downtrends—circulation usually increases as traders adjust their risk exposure.

Despite price pressure, the steady growth in velocity suggests the network's fundamental role remains solid. Trading volume remains high, and the ledger continues to handle large and frequent transfers. Analysts point out that strong activity during price declines is often a sign of structural resilience. In many past cycles, sustained network participation has often preceded a recovery in price momentum.

The current picture of the XRP ecosystem is clear: even as the market cools, "under the hood" activity remains robust. In the crypto world, high usage rates are often more convincing than short-term price fluctuations.