On-chain data reveals rising demand for XRP as the number of wallets holding at least 1 million XRP has increased. According to CoinDesk, this marks the first uptick since September 2025, with 42 new 'millionaire' wallets added this month, bringing the total to 2,016. This comes despite XRP's price falling about 4% this month, starting the year in a downtrend.

The report highlights that U.S.-listed spot exchange-traded funds (ETFs) linked to XRP have seen a net inflow of over $91 million this month, adding to the $666 million and $499 million amassed in November and December. By contrast, demand for Bitcoin ETFs has plummeted, with $278 million in redemptions processed this month alone.

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While XRP experiences a decline in price, the increase in millionaire wallets and steady ETF inflows signals underlying accumulation rather than speculative trading. Santiment noted that larger holders might be positioning for long-term gains instead of seeking immediate momentum. However, XRP's failure to reclaim its 50-day moving average indicates that the cryptocurrency is caught between long-term positioning and short-term risk aversion.

Without a significant uptick in broader crypto market momentum, particularly in Bitcoin and Ethereum, XRP may struggle to translate these improving fundamentals into lasting price gains. This divergence hints at a complex landscape for XRP investors, who might need to exercise patience in a volatile market environment.