Ripple (XRP) may have the 3rd highest market cap in the crypto space at $8 billion, but it is certainly not the 3rd most popular cryptocurrency, not even close, according to data from CoinMetrics. In fact, Ripple (XRP) is in last place out of all the major cryptocurrencies when it comes to active addresses.
Ripple (XRP) had somewhere just over 5,000 active addresses during March, and saw an 83% decline in active addresses from February to March. This pales in comparison to Bitcoin (BTC) which has 735,000 active addresses, and Ethereum (ETH) which has 387,000 active addresses.
Dogecoin (DOGE) easily beat out Ripple (XRP), since Dogecoin (DOGE) has 50,000 active addresses. Even Digibyte (DGB), which is not a major cryptocurrency by any definition, beat out Ripple (XRP) since it has over 6,000 active addresses.
Overall, this data proves that Ripple (XRP) is not really a major cryptocurrency, since it has the same activity as a minor to moderate cryptocurrency. Basically, there might be lots of Ripple (XRP) speculation on the markets, but no one is actually using the network. Indeed, it is almost unheard of for someone to actually use a Ripple (XRP) wallet, and when people hold Ripple (XRP) it is generally via an exchange.
Another thing this data proves is how market cap is not a good indicator of the popularity or value of a cryptocurrency. If market cap data was a good indicator of a cryptocurrency’s popularity, then Ripple (XRP) would have hundreds of thousands of active addresses.
Overall, this data makes it clear that a better parameter is needed to determine the true rankings of cryptocurrencies. Perhaps a good start would be a metric which combines active addresses with market cap and order book liquidity.