Introduction
Ripple’s ecosystem is advancing on multiple fronts, marked by significant capital inflows into new XRP investment products and strategic expansion for its stablecoin. However, these institutional and regulatory milestones are juxtaposed against concerning price action for its native token, XRP, as large-scale sell-offs create headwinds. This analysis examines the latest developments shaping Ripple’s complex market position.
Key Points
- Spot XRP ETFs in the US have attracted nearly $950 million in net inflows, led by Canary Capital's $371 million fund.
- RLUSD stablecoin has secured regulatory approvals in Abu Dhabi and Dubai, expanding its Middle East presence and reaching a $1.3 billion market cap.
- Large investors sold over 500 million XRP tokens in a week, potentially increasing supply and putting downward pressure on the price.
The XRP ETF Wave Attracts Nearly $1 Billion
The introduction of spot XRP exchange-traded funds (ETFs) in the United States has catalyzed substantial investor interest. According to data from SoSoValue, the cumulative total net flow into these products has reached almost $950 million. This surge followed Canary Capital becoming the first company to launch a U.S. spot XRP ETF with 100% exposure to the asset, a move quickly followed by other major asset managers including Bitwise, Franklin Templeton, and Grayscale.
Canary Capital’s fund has captured the lion’s share of these inflows, comprising $371 million of the total. Grayscale’s GXRP product ranks second with $213 million. The momentum suggests a growing appetite for regulated exposure to XRP, with 21Shares also rumored to be preparing a launch after submitting a fifth amendment to its S-1 filing, bringing its product closer to market.
RLUSD Stablecoin Gains Regulatory Ground
Parallel to the ETF developments, Ripple’s dollar-pegged stablecoin, RLUSD, is making strategic inroads, particularly in the Middle East. Nearly a year after its launch, the asset has received critical regulatory approvals. The Abu Dhabi Financial Services Regulatory Authority (FSRA) recently recognized RLUSD as an accepted fiat-referenced token, following similar backing from the Dubai Financial Services Authority (DFSA).
This regulatory progress has been accompanied by growing institutional support, including from banking giant BNY Mellon. Consequently, RLUSD’s market capitalization has surged to almost $1.3 billion, positioning it as the 84th-largest cryptocurrency. Despite this growth, as reported by CryptoPotato, RLUSD remains a minor player in a stablecoin sector overwhelmingly dominated by Tether’s USDT and Circle’s USDC.
XRP Price Faces Pressure from Whale Activity
Amid these ecosystem advancements, Ripple’s native token, XRP, is experiencing market pressure. The cryptocurrency currently trades at around $2.06, representing a 5% decline on a weekly scale. This downturn coincides with significant sell-off activity from large investors, often referred to as ‘whales.’
As CryptoPotato reported, these entities offloaded more than 500 million XRP tokens—worth over $1 billion—in the span of a single week. Such substantial selling increases the available supply on the market. Analysts note that if investor demand does not keep pace with this increased supply, it could result in further price decline. Additionally, this whale activity has the potential to trigger panic selling among smaller investors, exacerbating downward momentum.
📎 Related coverage from: cryptopotato.com