XRP Maintains Top 5 Spot in Most Profitable Assets Despite Price Decline

Key Points
– XRP continues to show profitability despite recent price challenges, maintaining its position as a top asset.
– Santiment’s report emphasizes XRP’s resilience during price stagnation and highlights its profitability.
– Ripple’s escrow releases contribute to XRP’s profitability despite market fluctuations.
Despite facing recent difficulties in price performance, XRP, the digital asset associated with Ripple, remains one of the top 5 mainstream assets with the highest profitability. According to analytics platform Santiment, XRP has managed to hold its ground even though it has not surpassed the $0.5 mark in over two months.
The report reveals that despite XRP’s price remaining stagnant, 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 speculations about stablecoin alternatives.
Santiment’s Supply Profitability Metric
Santiment’s analysis focuses on the “Supply in Profit” metric, which compares a token’s current value to its initial value when it was first introduced on the blockchain. This metric helps determine whether 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%
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— Santiment (@santimentfeed)
June 6, 2024
Bitcoin (BTC) leads with 98.3% of its circulating supply in profit, followed closely by Ethereum (ETH) at 95.1%. Chainlink and Dogecoin secure the third and fourth positions, with profitability ratios of 86.8% and 82.2% respectively.
XRP’s Current Status
Despite experiencing a 15% price decline this year, XRP maintains the fifth position with a profitability ratio of 78.8%. It is the only cryptocurrency on the list to have suffered losses since January. However, the high profitability ratio of XRP can be attributed to various factors.
A significant portion of XRP’s circulating supply was released when the price was considerably lower. Additionally, these releases often coincided with periods of low prices, contributing to the high profitability ratio.
Ripple’s Escrow Releases
Ripple’s escrow releases play a significant role in sustaining XRP’s profitability. With an inflation rate of around 200 million tokens per month, these 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 rates. Recent escrow releases in May and June coincided with relatively low XRP prices, further boosting its ongoing profitability.
In conclusion, while XRP may face challenges in price performance, its profitability metrics indicate a strong and resilient market presence.