# Analysis of XRP Growth and User Engagement in H1 2025
## Introduction
In the first half of 2025, XRP witnessed a substantial increase in the number of new addresses created. Despite this surge in new addresses, the level of user engagement on the XRP Ledger experienced a decline, posing questions about the actual network activity.
## XRP Address Growth
The data from the Finbold H1 2025 Cryptocurrency Market Report reveals a notable rise in the total number of XRP addresses. From January 1 to June 30, 2025, the total addresses surged from 6,282,144 to 7,116,378, indicating an addition of over 834,000 addresses. This growth was distributed between the two quarters, with 528,997 new addresses in Q1 and a further 305,237 in Q2.
## Decline in Active Addresses
In contrast to the increase in total addresses, active address counts witnessed a downward trend. The count dropped from 39,515 to 26,807 by the end of the first half of 2025. The net loss of 12,708 active wallets in Q2 compounded the decline of 16,772 reported in Q1.
## Reasons Behind Reduced User Engagement
While there is a growing number of new users entering the XRP ecosystem, there is a decline in the active participation on the network. This discrepancy indicates a rising passive interest, potentially signifying investors parking funds or institutions onboarding for future utilization, rather than immediate engagement with the network.
## Regulatory Impact
The decline in active addresses in Q1 occurred despite positive regulatory developments, such as SEC Chair Gary Gensler stepping down and Ripple CEO Brad Garlinghouse confirming the resolution of major legal challenges. This period saw a decrease in unique active addresses from 39,515 to 22,743.
## Conclusion
The data from H1 2025 suggests a 42.2% reduction in active addresses, highlighting a disparity between the growth in new addresses and actual network engagement. This raises concerns regarding the level of participation in the XRP ecosystem and whether the influx of new users will eventually lead to sustainable usage.
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