XRP, the digital asset associated with Ripple, has seen a surge in profitability despite its price remaining relatively stagnant over the past few months. According to data from Santiment, over 90% of XRP’s circulating supply is currently in profit, outperforming several other major altcoins in terms of investor sentiment.
The high profitability of XRP holdings indicates a positive outlook among investors, with only Bitcoin surpassing XRP in terms of profitability. This metric is often used to gauge market sentiment, with a higher percentage of profitable wallets potentially leading to sell pressure as investors take profits.
Despite a recent dip in XRP’s price, the strong on-chain profitability suggests a foundation for a potential rebound in the near future. Market analysts believe that developments beyond price charts could further catalyze XRP’s growth phase.
One significant development is the resolution of Ripple’s case with the US Securities and Exchange Commission (SEC), which has removed a major overhang from the token. Although progress on this front has faced some setbacks, the overall market sentiment on XRP remains positive.
Notably, Nasdaq-listed VivoPower announced plans to establish a $121 million XRP-backed treasury, marking a first for a US-listed public company. This move underscores the growing belief in XRP and its potential for success.
The XRP Ledger (XRPL) is also experiencing rapid expansion within its ecosystem, with major institutions adopting the blockchain network for various projects. The Dubai Land Department, for example, is utilizing XRPL for a real estate tokenization project, showcasing the network’s utility and versatility.
Furthermore, new stablecoin products have been launched on the XRPL, expanding its use cases across fintech and traditional financial institutions. Institutional interest in XRP-related trading products is also on the rise, as evidenced by the introduction of XRP futures products by the Chicago Mercantile Exchange (CME) and the US SEC’s consideration of multiple filings for a spot XRP ETF.
These developments point towards a growing institutional confidence in XRP and a broader push towards its adoption, which could potentially lead to an increase in its price and market value. Overall, XRP appears to be primed for more success in the coming months as these positive developments continue to unfold.