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 favors other assets

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.