Active addresses on the XRP network surged 654.71% in a week, confirming network expansion alongside a price rebound.

On Aug. 25, blockchain outlet The Crypto Basic reported that active XRP addresses rose to 356,070 from 47,180.

The shift came with a price rebound. XRP traded near $0.9882 last week, extended gains and climbed to $1.70 on Aug. 22. After a partial pullback, it has shown a relatively stable trend around $1.48 to $1.50.

Markets are focusing more on the expansion in network participation than on the price rebound alone. Active addresses were below 50,000 just a week ago but have since exceeded 350,000. The rise in price and active addresses shows more addresses are joining the XRP Ledger (XRPL) ecosystem.

Institutional flows also pointed in the same direction. XRP spot exchange-traded funds (ETFs) posted $13.82 million of net inflows on Aug. 25 alone. Bitwise accounted for the largest share with $8.25 million, followed by Franklin Templeton at $4.01 million and Canary Capital at $1.57 million. 21Shares and Grayscale had no new inflows. Cumulative net inflows were tallied at about $1.57 billion.

Weekly flows were also strong. In the week ended Aug. 21, XRP spot ETFs drew $39.78 million. That was the strongest weekly performance since mid-May, confirming that the recent rebound was not only a short-term move detached from spot demand.

Participation also increased in derivatives markets. According to CryptoQuant data, XRP futures trading volume on Binance, Bybit, OKX and Bitget reached $11.37 billion on Aug. 22.

Large amounts of XRP leaving exchanges also surged over the same period. Large withdrawals rose to 231 million tokens, up 4.3 times over 48 hours. With futures trading expanding, exchange outflows jumping and prices rebounding at the same time, the recent rally is closer to a phase of participation rising all at once than a gradual recovery.

Still, the $1.70 area remains a key price level. XRP surged from around $0.99 to $1.70 and then slipped back to around $1.50. That means selling pressure remains strong near the top. Markets are watching whether XRP can climb back above $1.70 and then hold above that level.

Optimism and caution are both emerging over the price outlook. Steven McClurg (스티븐 맥클러그), chief executive officer of Canary Capital, said it would not be surprising if XRP reaches $3.40 within the next year if institutional lending, credit and yield opportunities expand further on the XRP Ledger. He warned, however, that the cryptocurrency market remains in a bear market and volatility could rise further due to seasonality and political factors.

XRP's next task is to turn the sharp rebound into a sustainable uptrend rather than a temporary spike. With network activity, ETF inflows and derivatives trading all rising strongly, markets are focusing on whether prices will test $1.70 again.

$XRP NETWORK ACTIVITY EXPLODED! Active addresses have surged 654.71%, jumping from 47,180 to 356,070. That kind of spike typically signals a sharp increase in network participation and is often accompanied by higher price volatility. https://t.co/70eHTdeG8a pic.twitter.com/1eJA319sJk