What happened?
The price of XRP today stands at $2.81, signaling a 2.35% drop in the past day. The token is currently ranked #4 by market cap, valued at $166.89 billion with 59.48 billion XRP in circulation out of a maximum supply of 100 billion. This dip comes as part of a wider crypto selloff, triggered by Bitcoin’s slide to a seven-week low and Ethereum’s pullback due to substantial expiring options.
Who does this affect?
The decreasing value of the XRP token affects investors, traders, and holders of the token. Notably, the token slipped behind Tether (USDT) in total valuation. There’s also a decrease in the number of active addresses on the XRP Ledger, demonstrating weaker network activity. This situation affects investor confidence, evidenced by reduced futures open interest from $10.94 billion to $7.97 billion.
Why does this matter?
The current state of the XRP token could potentially impact the wider altcoin market. If the token can defend key support levels, it could reignite momentum across the altcoin sector. Furthermore, historical trends show that XRP rallies have previously boosted liquidity and confidence in the overall market, making these developments crucial for traders and institutional flows who are closely observing the situation.