Retail demand drives growth as institutional interest stalls

A new report from 10x Research reveals that the cryptocurrency market is currently seeing a divide in capital flows between retail and institutional investors. While institutional capital continues to support assets like Solana (SOL) and Ethereum (ETH), the XRP ecosystem is experiencing strong growth driven by retail adoption.

According to the 10x Research report, XRP’s price action is mainly supported by “strong retail demand and expanding utility.” The XRP ecosystem is seeing increasing adoption, with retail investors leading the charge in its growth. 

While institutional interest in XRP remains cautious, retail investors continue to push the asset forward. The XRP Ledger (XRPL) is developing real-world use cases, but the absence of significant institutional flows reflects a more conservative stance from Wall Street.

Institutional capital continues to be a driving force for other major cryptocurrencies, particularly Solana and Ethereum. According to the report, institutional interest in Solana remains strong, as shown by its $20 million in ETF net flows for the week, while Ethereum has seen institutional outflows of $60 million. 

In contrast, XRP ETFs only saw a modest $0.6 million in positive flows, reinforcing the notion that institutional investors are still cautious about XRP despite its growing retail base.

In addition, XRP’s strength is being supported by growing on-chain retail adoption. Blockchain analytics firm Santiment reported that the XRP Ledger recently reached a new milestone, with 5.66 million wallets holding under 100 XRP. This surge in retail participation signals that the XRP ecosystem is attracting more users despite the lack of significant institutional investment.