While XRP’s holder ratio fell significantly during the first half of 2025, the token continues to outperform Solana in terms of overall investor engagement, buoyed by rising institutional interest and optimism surrounding a potential Ripple spot ETF.

According to Bybit’s 25H1 Asset Allocation Report, XRP’s holder ratio dropped from 5% to 2.42% over the first six months of the year. Despite this dip, XRP remains ahead of Solana (SOL), whose holder ratio fell from 2.72% in November 2024 to 1.76% by May 2025.

XRP’s Decline Is Relative, But Long-Term Growth Remains

The numbers paint a complex picture. While XRP’s H1 2025 performance shows a decrease in the percentage of token holders, zooming out reveals a different story. From October 2024 to May 2025, XRP’s holder ratio actually doubled, growing from 1.29% to 2.42%.

This apparent contradiction emphasizes the importance of context when interpreting on-chain data. Short-term declines may be the result of market cycles or profit-taking, whereas long-term trends still point to a steady rise in investor adoption.

Solana Losing Ground to XRP in the Race for Institutional Attention

One of the key factors behind XRP’s resilience is the shifting sentiment among institutional investors. Bybit’s report highlights a trend of capital rotation from Solana to XRP, largely driven by the increased likelihood of a Ripple spot ETF being approved ahead of a comparable product for Solana.

“The crypto investing industry view is that Ripple Spot ETF approval is likely ahead of such approval for a Solana Spot ETF,” the report stated.

As a result, institutions have begun reallocating funds to XRP, expecting stronger upside potential in the near term.

Retail Traders Favor XRP Over Bitcoin in H1 2025

Retail behavior also reveals a fascinating shift. According to Bybit, Bitcoin holdings among retail traders declined from November 2024 to May 2025, while interest in altcoins—particularly XRP—rose.

Retail investors appear to be seeking higher-risk, higher-reward assets, moving away from Bitcoin’s perceived stability in favor of altcoins with potential catalysts, such as ETF approval or network utility expansions.

Furthermore, retail portfolios now feature larger allocations to stablecoins, suggesting a more cautious or tactical approach amid ongoing market volatility.

Whale Activity at 12-Year High Signals Confidence

One of the strongest indicators of long-term confidence in XRP is the surge in whale wallet activity. In June 2025, the number of whale wallets holding large XRP balances surpassed 2,700—the highest level in over 12 years, according to BeInCrypto.

This increase in high-value holdings suggests that institutional and high-net-worth investors see XRP as a strategic asset worth accumulating, especially as regulatory developments appear to favor its mainstream adoption.

XRP A Rare Exception in a Fragmented Market

While many altcoins have struggled with inconsistent investor participation in 2025, XRP seems to be gaining ground on multiple fronts:

• Institutional investors are rotating funds from Solana to XRP.

• Retail investors are moving from Bitcoin to altcoins, with XRP among the top beneficiaries.

• Whale wallets are increasing, indicating long-term accumulation.

These converging trends suggest XRP is uniquely positioned in the current crypto cycle—attracting broad interest despite short-term fluctuations in holder numbers.

Outlook: Can XRP Sustain Its Momentum?

While the dip in XRP’s holder ratio from 5% to 2.42% could raise concerns at first glance, the broader metrics indicate that the token is benefiting from a structural shift in investor sentiment.

If a Ripple spot ETF gains regulatory approval in the U.S., it could become a major catalyst for new capital inflows and further cement XRP’s role as a leading altcoin in the DeFi and institutional finance sectors.

Until then, growing whale activity, wallet integrations (like Cardano’s recent support for XRP), and increased interoperability efforts all suggest XRP is more than just holding its ground—it’s expanding it.