XRP Outpaces Bitcoin & Ethereum In Weekly Inflows, What’s Next?

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Over the last several days, XRP has seen significant momentum, boosted by its strong surge and other market updates. Notably, a recent analysis indicated that Ripple‘s native cryptocurrency outperformed Bitcoin and Ethereum in terms of money flow during the previous week. This finding has ignited conversations within the crypto sector, particularly since analysts predict a possible price increase for the asset in the near future.

XRP Outpaces Bitcoin & Ethereum With Robust Weekly Inflow

Last week, Bitcoin experienced a $25 million outflow, according to a recent report from CoinShares Digital Asset Fund Flows. Conversely, Ethereum saw a $2 million increase, while Solana had an outflow of $0.4 million. Interestingly, amidst this trend, XRP stood out as one of the top altcoins with the most significant influx.

Based on recent figures, Ripple’s native cryptocurrency received approximately $5.7 million, outpacing both Bitcoin and Ethereum. This growth seems to have added more positive momentum to the overall crypto market, particularly given the growing enthusiasm surrounding digital currencies.

In the initial three business days of 2025, Bitcoin and Ethereum showed signs of renewed energy, attracting investments worth approximately $573 million and $11 million each. On the other hand, Ripple (XRP) saw relatively small investment inflows during this period.

In 2024, digital asset investment products globally experienced a remarkable surge, with approximately $44.2 billion flowing into them – nearly four times the amount recorded in 2021. Although there were withdrawals recently, Bitcoin stood out as the top performer, raking in around $38 billion in investments last year, which equates to about 29% of all assets under management (AuM).

As a researcher, I’ve observed an interesting trend in the crypto space: while other assets might have seen a slower growth, Ethereum has shown a remarkable resurgence. In fact, the full-year inflows for Ethereum reached a staggering $4.8 billion in 2024, which is more than double the total inflows recorded in 2021. On the other hand, altcoins, excluding Ethereum, garnered inflows of only $813 million last year, accounting for merely 18% of the total assets under management (AuM).

Can Ripple’s Native Crypto Maintain This Bullish Momentum?

Today, XRP’s price increased approximately 2% and was traded at $2.40. Yet, its trading volume decreased by 12% to reach $3.71 billion. Over the past week, the cryptocurrency has experienced a growth of around 15%, but it has dropped about 2% over the last month. However, there’s been a significant increase of approximately 65% in XRP’s Futures Open Interest, suggesting that investors are showing increased interest in this crypto.

Significantly, Donald Trump’s election victory has sparked renewed confidence among investors regarding digital assets. According to CoinShares data, the U.S. had a significant impact on last year’s increase in inflows, with US ETFs based on spot markets accounting for approximately $44.4 billion of the total inflows.

Additionally, this has fueled anticipation for a crypto-friendly regulatory landscape within the nation. Moreover, numerous analysts have suggested that the ongoing Ripple vs. SEC case may reach a resolution under the leadership of incoming SEC Chair Paul Atkins. If this transpires, it could propel prices to a record high in the near future.

Yet, it’s important to note that investors should be mindful of a potential development: Gary Gensler, the current SEC chair, might unexpectedly file the opening brief in the XRP lawsuit before its conclusion. This unexpected move could negatively impact investor sentiment and potentially affect XRP’s performance. Furthermore, analyst Ali Martinez has forecasted that XRP’s price may experience a short-term decline, but he remains optimistic about the coin’s long-term growth prospects.

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2025-01-06 16:48