In a positive turn of events for Ripple’s native coin XRP, the market capitalization returned to the long-lost $122 billion. In doing so, XRP has defeated BNB in the battle for the third position after Bitcoin and Ethereum. As this has come to be in a market where every asset is performing well, XRP’s achievement is truly commendable.
As XRP has clearly started its breakout run, the only remaining question is where this run will end for XRP. As XRP is skyrocketing, it has come to attention that the buying pressure has increased significantly. A sentiment of FOMO(Fear Of Missing Out) has gripped the market. If this is the case, then the coming days will see more capital inflow into the XRP market.
XRP Outpaces BNB As It Reclaims The $122 Billion Market Cap
After prices surged past nearly 6% on 3rd January, XRP was finally able to reclaim the lost market capitalization. XRP’s surge was comparatively stronger, which outpaced BNB by miles. While XRP gained 6%, BNB managed a mere 0.65% increase. With a major options market closing, the pressure on the price was relieved, and XRP was able to make significant gains.
While XRP was able to reclaim its lost market capitalization and displace BNB from the top 3 position, BNB remains competitive with a $120 billion market capitalization and strong fundamentals. As the XRP price appreciated, so did market participation. With the asset reclaiming lost territory, the market witnessed the return of investors who had become skeptical of XRP in the past. The analysis of market data shows increased participation courtesy of the strong performance of XRP. The market activity at that time went as high as $4.14 billion.
This increase in activity, which marked a growth of nearly 140%, was reflected in the on-chain movements of XRP as well. Both small and large traders have been seen moving XRP strategically over the days.
XRP Price Gains The Most Among The Top Cryptocurrencies Of The Market
While the whole crypto market has been seeing renewed growth since the beginning of this year, XRP’s growth was on a whole different level. Just the previous day, XRP single-handedly gained more growth rate than any other crypto in the market. This means that XRP’s gains topped the chart, beating Bitcoin, Ethereum, and BNB for the top position in terms of gains.
Even when the crypto market was down, the ETF market displayed renewed strength. So it is quite natural that the ETF inflow will spike during this positive streak as well. With such a strong institutional-level backup, XRP can indeed outperform itself in the coming days. When speaking of gains, it is important to track how the market’s funds are being moved between different crypto assets. For XRP, rather than being circulated from other crypto assets, the capital that has entered the market constitutes fresh capital.
According to data from Coinbase, the USD-to-XRP trading volume spiked rapidly, crossing the 300% level. This proves that fresh capital is entering the market. When fresh capital enters the market, it is a positive sign that new investors are getting curious about the asset, and they are willing to invest their capital into the asset. Since this is the data from the spot crypto market, this is really important as investors are increasingly viewing XRP as a strategic asset that has long-term potential.
