Top 3 Reasons Why XRP Inflows Crash to $37 Million

The crypto investment products have witnessed $3.3 billion in inflow this week, and a massive XRP inflow crash. The popular cryptocurrency has faced a $37.2M outflow, whereas its competitors have taken the lead in inflows, raising suspicion on some underlying issues. Meanwhile, the XRP price also struggled on the chart. So, let’s discuss the key reasons behind this downfall.

XRP Inflows Crash While SOL, ADA Gains Momentum

According to the CoinShares report, the crypto investment products are witnessing high inflows, $3.3 billion weekly and $10.8 billion over 6 weeks. In the period, the AUM event hit $187.5 billion briefly before declining, led by the Bitcoin price rally to an ATH. However, XRP inflows lost momentum this week, witnessing a $37.2 million crash, the worst weekly performance.

Interestingly, this change wasn’t new, as the XRP downtrend has been going on for nearly a month, with $28.6M outflows to date. As a result, its 80-week inflows streak ended. However, on the Year-to-Date mark, it still stands strong at $226 million, much higher than its competitors ADA, SOL, SUI, and others.

SOL has witnessed $4.3M in inflows, SUI witnessed $2.9M, ADA at $0.6M, and LINK at $0.9M in inflows. This shows the investors’ attention was higher towards these trending altcoins rather than XRP.

Besides, Bitcoin and Ethereum still continue to dominate institutional flows, as BTC had $2.9 billion weekly inflows and ETH had $326 million weekly inflows.

Top Reasons Why XRP Inflows Crash

As the SOL, ADA, SUI, and LINK are gaining steady traction in the crypto market, XRP is suffering amid the major sentiment shift and outflows. The XRP price also consolidated massively, crashing to a low of $2.27 before making a recovery today. At present, it trades at $2.33 after a 2% surge in the last 24 hours.

The decline in investors’ confidence in the digital asset is the primary reason behind the XRP inflow crash. Additionally, this is the continuity of the ongoing monthly outflows, amid profits rotation, which experts associate with the delay in Spot XRP ETF approval.

Besides the delay in the regulatory hearing, i.e., the SEC vs Ripple lawsuit, uncertainty over the token is still cast, resulting in this crash.

Another reason is that Bitcoin and Ethereum had the investors hooked, with Bitcoin’s ATH and other bullish factors. As a result, the momentum shifted to them.

✓ Share:

Pooja Khardia

With a deep-seated passion for reading and five years of experience in content writing, Pooja is now focused on crafting trending content about cryptocurrency market.

As a dedicated crypto journalist, Pooja is constantly seeking out trending topics and informative statistics to create compelling pieces for crypto enthusiasts. Staying abreast of the latest trends and advancements in the field is an integral part of her daily routine, fueling a commitment to delivering timely and insightful coverage

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.