Key Points:
- XRP experiences a 700% increase in institutional investments amidst market stability.
- Ripple’s resilience and strategic partnerships attract institutional attention.
- Controversy surrounds centralization claims as the Ripple Party approaches.
While the broader cryptocurrency market remains relatively stable, XRP has emerged as a favored choice among institutional investors. According to the latest CoinShares report, this altcoin has exhibited impressive performance over the past week, defying the prevailing outflows in digital asset investment products.
Institutional Adoption of XRP Soars by 700%
Institutional investors are increasingly turning their attention to the world of altcoins, with a notable influx of capital into XRP, especially amid heightened activity on platforms like Bitstamp. CoinShares’ recent report highlights a consistent trend of outflows from digital asset investment products for the sixth consecutive week, primarily driven by low trading volumes. Of the total outflow amounting to $9 million, Bitcoin experienced the largest share, with $5.9 million exiting Bitcoin investment products.
Conversely, XRP’s digital products witnessed a remarkable turnaround, with institutional inflows surging from $0.1 million in the previous week to $0.7 million in the past week. This impressive increase represents a staggering 700% spike compared to the prior week and marks a continued reversal from the net outflows observed in the previous month.
The last instance of such substantial inflows into XRP occurred following Ripple’s partial legal victory, resulting in $0.5 million flowing into the digital asset’s investment products.
Several factors are contributing to the growing interest of institutional investors in XRP. Firstly, XRP has demonstrated robust resilience and delivered higher returns compared to most other cryptocurrencies this year. Additionally, Ripple, the entity behind XRP, has made significant strides in expanding the utility of the XRP Ledger through strategic partnerships with various financial institutions and payment service providers.
Debates Surrounding Centralization and the Upcoming Ripple Celebration
The recent surge in XRP inflows coincides with debates surrounding XRP’s alleged centralization and the impending Ripple celebration event. Bitcoin advocate Max Keiser stirred controversy by asserting that XRP is centralized due to Ripple’s control, citing a 32-year-old patent for a distributed computer system filed by Ripple. However, this claim was met with resistance from community members who vehemently disagreed with Keiser’s perspective.
Furthermore, the uptick in XRP product inflows can be attributed to the forthcoming Ripple Party, announced by the payment technology company. The event is set to commemorate Ripple’s partial legal victory against the SEC and is scheduled for September 29th.
The recent surge in institutional interest and investment not only in XRP but also in other altcoins like Litecoin and Solana may foreshadow a significant price rally in the near future. Nevertheless, one cryptocurrency analyst suggests that investors might need to exercise patience, as it could be another five years before XRP reaches its next all-time high. Currently, XRP is trading at $0.5006, experiencing a marginal 0.9% decline over the past seven days.
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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
