XRP Price Action Defies Retail Sentiment as On-Chain Activity and ETF Inflows Rise
XRP is experiencing a notable disconnect between market sentiment and actual investment activity, with social data indicating a fear zone for the asset despite increased on-chain activity and significant inflows into regulated products. This divergence is reminiscent of late November, when a similar spike in retail pessimism preceded a brief price recovery. However, the current market backdrop is characterized by greater selling pressure and larger flows through institutional channels, widening the gap between user sentiment and observable market activity.
On-Chain Activity and Sentiment Diverge
Data from Santiment shows that XRP has entered a fear zone, with bearish commentary far outweighing bullish talk. This is the second time in three weeks that sentiment has turned decidedly negative, following a 31% price drop over the past two months. Despite this, the XRP Ledger (XRPL) is seeing increased transaction intensity, with on-chain data from CryptoQuant indicating a network speed metric of 0.0324 on December 2, the highest value this year.
The Social Sentiment of XRP (Source: Santiment)
ETF Inflows Counter Retail Sentiment
While retail commentary has turned negative, inflows into spot exchange-traded products have moved in the opposite direction. According to SoSoValue ETF data, XRP products raised approximately $12.84 million on December 4th, with Solana products raising approximately $4.59 million. In contrast, Bitcoin ETFs recorded net outflows of approximately $194.64 million, and Ethereum products lost approximately $41.57 million.
Daily inflow of the XRP ETF since its launch (Source: Santiment)
Ripple’s Expanding Market Presence
Behind this institutional interest is a structural change in Ripple’s business model. The company has invested nearly $4 billion in a series of acquisitions in 2025, aiming to transform XRP from a speculative asset to a corporate finance settlement service provider. The acquisition of GTreasury, Rail, and Palisade, as well as the integration of Ripple Prime, demonstrates a strategy of vertical integration of value transfer.
XRP Ledger (XRPL) Speed. (Source: CryptoQuant)
What’s Next for XRP?
The current setup places XRP at an intersection where crowd emotions and market activity diverge. Retailers are expecting the recent price declines to lead to a permanent decline, while data-driven participants, ETF issuers, and infrastructure builders are looking at volatility as a liquidity event to deepen their positions. History shows that when sentiment and flows diverge so widely, the flows ultimately dictate the price, suggesting that XRP’s price may rise due to its positive fundamentals.
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