XRP Maintains Top 5 Ranking as One of the Most Profitable Assets Despite Price Decline
Key Points
– XRP continues to show profitability despite recent price challenges, maintaining its position among the top assets.
– Santiment’s report highlights XRP’s resilience during price stagnation.
– Ripple’s escrow releases contribute to XRP’s profitability despite market fluctuations.
Despite facing recent struggles in price performance, XRP, the digital currency linked to Ripple, remains one of the top 5 mainstream assets with the highest profitability. According to Santiment, XRP has managed to retain its position despite failing to surpass the $0.5 mark for over two months.
The report reveals that despite the stagnant price movements of XRP, a majority of its circulating supply is currently trading at a profit. This resilience is noteworthy, especially considering the concerns surrounding XRP’s inability to break the $0.5 barrier, leading to speculation of stablecoin alternatives.
Santiment’s “Supply in Profit” metric analyzes the current value of a token compared to its initial value when it first appeared on the blockchain. This metric aims to determine if a token is currently profitable or not. The percentage of top assets’ supply in profit is as follows:
– Bitcoin: 98.3%
– Ethereum: 95.1%
– Chainlink: 86.8%
– Dogecoin: 82.2%
– XRP: 78.8%
– Cardano: 53.5%
Bitcoin leads the pack with 98.3% of its circulating supply in profit, closely followed by Ethereum with 95.1%. Chainlink and Dogecoin secure the third and fourth positions with profitability ratios of 86.8% and 82.2% respectively.
Despite a 15% price decline this year, XRP maintains its fifth position with a profitability ratio of 78.8%. This decline sets XRP apart as the only cryptocurrency on the list to experience losses since January. However, its high profitability can be attributed to several factors. A significant portion of XRP’s circulating supply was released when its price was much lower, and token releases often coincided with periods of low prices, contributing to the high profitability ratio.
Ripple’s escrow releases also play a key role in sustaining XRP’s profitability. With an inflation rate of around 200 million tokens per month, Ripple’s escrow releases inject a substantial number of tokens into circulation. Despite concerns about inflation, the timing of these releases often aligns with low XRP prices, ensuring that the released tokens remain profitable at current market prices. Recent escrow releases in May and June coincided with relatively low XRP prices, further contributing to its ongoing profitability.
In conclusion, despite facing challenges in price performance, XRP’s profitability metrics indicate a strong and resilient market presence.