What happened?
Ripple’s native token, XRP, saw a 3.1% decrease in value over a 24-hour period due to a wider cryptocurrency market pullback. The token notably failed to hold at $2.81, with significant sell-offs occurring around the $2.80 mark. This drop largely stemmed from substantial institutional liquidation flows, totaling $1.9 billion since July.
Who does this affect?
This impacts XRP investors and anyone connected with the wider crypto market. Particularly, long-term investors (known as ‘whales’) who held significant amounts of XRP tokens faced a notable impact due to the drop. Furthermore, institutions that have recently filed XRP ETFs including Grayscale, Bitwise, Canary, and 21Shares may also be affected by these fluctuations.
Why does this matter?
The drop in Ripple’s XRP matters significantly for the crypto market as it is the 4th largest cryptocurrency. Changes in its value can influence investor sentiment and market dynamics. However, despite this decrease, there’s anticipation for a robust comeback due to increased utility and interest in XRP ETFs. In fact, the demand for these altcoin-based products seems to be vastly undervalued, indicating a potential market opportunity.