Despite the prevailing Bitcoin dominance in the crypto market, Ripple’s XRP stands tall, demonstrating an undeniable appeal to institutional investors. With significant funds consistently being pumped into XRP products, this cryptocurrency is steadily carving out a distinctive niche for itself.
Bucking the Dominant Trend: XRP’s Steady Rise
While Bitcoin continues its stronghold, XRP funds have recorded an inflow of approximately half a million dollars just this week. This marks an impressive streak, as XRP-based investment tools have been on the receiving end of consistent investments for close to four successive months.
The Impact of Institutional Backing
Whenever institutional investors decide to pump capital into an asset, it generally signals positive prospects for that particular commodity. Ripple’s XRP is no exception. A recent report from CoinShares, a prominent Exchange Traded Products (ETP) firm focused on cryptocurrency, unveiled that institutional investors directed a whopping $29 million into digital asset products over the past week. Analysts are attributing this bullish trend to recent US inflation data, which presented figures below what the market had anticipated.
Economic Shifts Fueling Enthusiasm
The unforeseen twist in macroeconomic patterns, particularly those lessening the likelihood of a rate hike in September, seems to have further ignited the investment fervor. Complementing this, XRP reported inflows worth half a million dollars, emphasizing the consistent investment interest over several months.
AUM Sees Impressive Surge
From the start of 2023 to now, the Assets Under Management (AUM) for XRP funds have catapulted by a staggering 127%. Presently, XRP trades at a value of $0.6267, witnessing a marginal dip of 0.20% in the last day.
Since the dawn of 2023, XRP funds have been bolstered by an influx of $11 million. Several pivotal events have acted as catalysts in this upward trajectory. Key among these is Ripple’s momentous legal victory over the SEC, a slew of strategic alliances forged by XRPLedger with eminent payment corporations and financial establishments, and the increasing mainstream acceptance of this particular altcoin.
Source: https://coinpedia.org/altcoin/ripples-xrp-gains-ground-among-institutional-investors/