Sharp surge in XRP trading indicated by a significant capital influx totaling $2.17B
Read About XRP's Resurgence on Google News * Just a Small Step Towards Old Heights* Regulatory Breakthroughs and Bullish Sentiment
The popular cryptocurrency, XRP, has witnessed a surge in trading activity, as shown by recently released data from blockchain analytics firm Glassnode.
According to the latest figures, XRP's short-term investment inflows, known as "hot capital," jumped from $0.92 billion on April 20 to a staggering $2.17 billion by April 28, marking a sizable 134.9% increase in a week's time. This surge in "hot capital" signifies a renewed wave of activity from short-term traders and speculators.
"Hot capital" represents newly acquired assets that are typically held for less than a week, and these funds often indicate speculative trades and rapid investments, serving as a gauge for short-term investor interest and trading activity.
Glancing Back, Looking Ahead
Although this recent uptick is noteworthy, XRP's current "hot capital" remains far below its all-time high. In December 2024, XRP's short-term investment inflows peaked at a whopping $7.66 billion, over three-quarters higher than the present-day figure. Despite the latest surge, XRP has yet to recapture the same level of short-term momentum it enjoyed at the end of last year.
Shifting Landscape
Part of the reason for XRP's recent attention comes from the evolving regulatory landscape. Today, U.Today reported that the U.S. Securities and Exchange Commission (SEC) has delayed its decision on the XRP ETF application submitted by investment behemoth Franklin Templeton. However, the optimism among the XRP community remains high, as 88% of community members currently maintain a bullish outlook on XRP3.
The Road Ahead
Significant regulatory developments and institutional products are fueling XRP's recent trading activity. For instance, the SEC approved three XRP futures ETFs in April 20251, and a final decision on XRP spot ETFs is expected by October 18, 20255. Meanwhile, Ripple's resolved lawsuit with the SEC (March 2025) eliminated a key regulatory hurdle, although broader crypto regulations have yet to fully take shape1.
In addition to regulatory breakthroughs, increased institutional exposure, and technical breakouts, daily active addresses on the XRP network have experienced a 12% jump to 45,000 by April 295, signaling growing retail participation. However, short-term volatility is induced by the launch of CME's XRP futures (May 19, 2025)4 and Coinbase's futures contracts, as they absorb liquidity4. Moreover, current prices (approximately $0.55-$0.60) face sell pressure near the 2024 highs5, while long-term targets reach $104.
In summary, although regulatory progress and institutional products are propelling XRP's activity, delays in spot ETF approvals and macroeconomic headwinds are keeping the price short of its previous highs. Keep an eye on these factors to anticipate XRP's future trajectory.
- The surge in XRP's trading activity, as represented by the increase in short-term investment inflows, or "hot capital," is influenced by regulatory breakthroughs and bullish sentiment in the crypto market.
- XRP's current level of "hot capital" is significantly lower than its all-time high, which was seen in December 2024 at $7.66 billion.
- The optimism among the XRP community remains high, with 88% of community members maintaining a bullish outlook on XRP.
- Significant regulatory developments, such as the approval of XRP futures ETFs in April 2025 and the resolution of the lawsuit between Ripple and the SEC in March 2025, are fueling XRP's trading activity.
- Institutional products and increased retail participation, as indicated by the 12% jump in daily active addresses on the XRP network, are also contributing to XRP's resurgence.
- Despite these positive developments, short-term volatility is induced by the launch of CME's XRP futures and Coinbase's futures contracts, which absorb liquidity.
- The price of XRP faces sell pressure near its 2024 highs, with long-term targets reaching $10. Keeping an eye on these factors can help anticipate XRP's future trajectory in finance and technology by 2025.
