The cryptocurrency market recently witnessed a dramatic shift as XRP lost a staggering $13 billion in market capitalization within just 24 hours. This decline followed the launch of the first U.S. spot XRP ETF on Nasdaq, a much-anticipated event that had previously fueled optimism and price rallies.
What Happened to XRP?
On the day prior to the ETF launch, XRP’s market capitalization stood at $150.38 billion. However, it slid to $137.39 billion, with the price dropping 9% to $2.27. This plunge came as a surprise, especially after weeks of anticipation surrounding the ETF debut. Traders cited a classic “sell-the-news” scenario as the primary reason for this abrupt downturn.
Large-scale XRP holders, also known as whales, played a critical role in this dynamic. In the past month, these whales offloaded a massive 1.4 billion XRP tokens, significantly amplifying the selling pressure. The cascading sell-off sent XRP tumbling into the $2.20–$2.30 price range, an area that has historically provided support during corrections.
ETF Launch: A Mixed Bag?
Despite the price action, the underlying numbers from the ETF launch paint a different picture. Canary Capital’s spot XRP ETF, trading under the ticker symbol XRPC, saw $58.5 million in opening-day trading volume and $245 million in net inflows. These figures rank it among the most successful crypto ETF debuts, with strong institutional participation signaling genuine interest in regulated XRP exposure.
For context, XRPC has outpaced other notable crypto ETFs, securing its position as one of this year’s standout launches. While the immediate reaction may seem disappointing from a pricing perspective, investors looking for long-term adoption of XRP could still find hope in these robust inflows.
Broader Market Trends
XRP’s sharp reversal coincided with a widespread cryptocurrency market pullback. Over $200 billion vanished from the global crypto market cap within the same 24-hour period. Such macro-level declines likely intensified XRP’s price drop, though market analysts are urging observers to remember the ETF’s promising opening metrics.
If net inflows into XRPC remain consistent, the current dip may merely represent a temporary correction. Alternatively, weak follow-through in institutional investments could result in prolonged consolidation for XRP prices.
How Can You Get Involved?
For those looking to invest in cryptocurrencies like XRP, trading platforms such as eToro offer accessible solutions. eToro provides options to trade crypto as well as traditional financial assets like stocks, with features like copy trading and zero commission on certain assets. With over 30 million users worldwide, it’s a trusted choice for beginners and seasoned traders alike.
Remember, cryptocurrencies are highly volatile assets with significant risks. Always ensure you’re well-informed before making any investment decisions.
Final Thoughts
While XRP’s ETF launch didn’t go as planned, it’s essential to look past short-term price fluctuations and assess the broader adoption trends. Judging by the strong institutional inflows, regulated exposure to XRP through ETFs could be a stepping stone toward more mainstream crypto adoption.
