XRP (XRP) increased by 1.95% in the last 24 hours

Gate News Bot Message, December 29th, according to CoinMarketCap market data, as of press time, XRP (XRP) is trading at $1.91, up 1.95% in the past 24 hours, with a high of $1.94 and a low of $1.83. The 24-hour trading volume reached $1.458 billion. The current market capitalization is approximately $115.76 billion, an increase of $2.215 billion from yesterday.

Analysis of Recent Key Drivers for XRP

1️⃣ Continuous Net Inflows of Spot ETF Funds, High Institutional Allocation Enthusiasm Since the launch of the US spot XRP ETF in November, total net inflows have exceeded $1.13 billion, with assets under management rising to $1.25 billion, maintaining a steady 28 consecutive trading days of positive inflows. Franklin Templeton’s XRPZ holdings have surpassed 100 million tokens for the first time, reaching 101.5 million, with a market value of $1.927 billion. Institutions such as Canary Capital, Bitwise, and Grayscale have launched related products, with net inflows exceeding $384 million. Notably, while Bitcoin ETF and Ethereum ETF face outflows, XRP ETFs are attracting institutional funds against the trend, reflecting a market reassessment of XRP’s medium-term allocation value and indicating that institutional investors still recognize XRP’s long-term value even in a liquidity-sparse year-end environment.

2️⃣ Rapid Expansion of Cross-Chain Ecosystem, Significantly Enriching Application Scenarios and Liquidity Wrapped XRP (wXRP) has officially launched on the Solana network, developed by Hex Trust in partnership with LayerZero, supported 1:1 by native XRP. During initial launch, over $100 million in liquidity was locked. Users can now participate in DeFi activities across multiple networks including Solana, Ethereum, Optimism, Ink, and Unichain. Ripple’s stablecoin RLUSD has initiated multi-chain pilot programs, launching on Ethereum Layer 2 via Wormhole protocol. Layer 1 blockchain Flare, together with DeFi platform Upshift Finance and risk management firm Clearstar, has launched XRP yield products earnXRP, allowing users to deposit FXRP into vaults to earn XRP-denominated yields. These cross-chain developments mark the evolution of the XRP ecosystem from single-chain to multi-chain strategies, providing new application scenarios for real-world asset tokenization and yield protocols.

3️⃣ Declining Exchange Reserves and Improved On-Chain Structure Signal Reduced Selling Pressure Mainstream CEX platforms’ XRP reserves have fallen to about $2.6 billion, a new low since July 2024, indicating investors’ preference to transfer tokens into self-custody wallets. A decline in exchange reserves typically suggests a reduction in short-term circulating supply, helping to ease market selling pressure. The 30-day moving average of whale fund flows shows selling pressure has weakened compared to earlier periods. Although still in negative territory, the slowdown in downward trend hints that market selling pressure may be gradually easing, creating conditions for a subsequent rebound.

4️⃣ Clear Application Prospects in Japan’s Financial Scene, Solid Long-Term Value Foundation Japan faces intensified yen volatility and unstable foreign exchange conditions. XRP, with its instant settlement, no pre-funding requirement, and support for real-time FX transfers, is seen as a potential tool to address these issues. Through SBI Holdings, several Japanese banks have established connections with Ripple in cross-border payments, making XRP’s adoption in Japan relatively smooth. If Japan gradually adopts XRP for cross-border remittances and FX settlements without extreme supply-demand imbalances, XRP’s price could steadily rise within the $3–$5 range; in a more optimistic scenario, if XRP becomes a core settlement tool within Japan’s banking system, the price could reach the $8–$12 range.

5️⃣ Improved Institutional Trading Infrastructure and Maturity of Derivatives Market XRP has been gradually incorporated into regulated derivatives systems, with CME XRP futures trading volume reaching hundreds of billions of dollars, making it one of the fastest assets to surpass high open interest. CME’s XRP futures now support TAS (Trade at Settlement), allowing investors to settle trades at the closing price of the day, further facilitating institutional hedging and trading. Institutions generally adopt a “derivatives-first” strategy, using futures, swaps, and margin structures to control risk and gradually expand exposure. These infrastructure improvements reflect XRP’s transition from a highly volatile crypto asset to a tradable financial instrument suitable for institutional allocation.

6️⃣ Extreme Social Sentiment Diverging from On-Chain Structure, Rebound Momentum Brewing On-chain data analysis shows that investor social sentiment toward XRP has turned bearish, with negative comments significantly exceeding historical averages. However, such extreme sentiment often occurs near cyclical lows, and historical experience indicates that similar sentiment lows are often followed by price rebounds. Divergence between social sentiment and on-chain activity—where social discussions are pessimistic but on-chain activity and long-term holder behavior remain stable—suggests that market perception may lag behind actual network fundamentals. The RSI indicator also shows bullish divergence, indicating that downward momentum is weakening.

This message is not investment advice; please be aware of market volatility risks.