Why has the flow of funds to Ripple (XRP) plummeted? This is the future of XRP

Jakarta, Pintu News – The crypto market recently witnessed significant inflows of $3.3 billion in a single week, but Ripple (XRP) saw a notable decline with an outflow of $37.2 million. This phenomenon has led to various speculations regarding the factors that influenced the decline. This article will explore the three main reasons behind the decline in inflows to Ripple (XRP).

Decline in Investor Confidence

The decline in investor confidence in Ripple (XRP) is the main reason why the flow of funds into this crypto asset has decreased dramatically. In recent weeks, Ripple (XRP) has lost its momentum, with outflows reaching $28.6 million. This marks the end of 80 consecutive weeks of positive trends.

Additionally, investors seem to be more interested in up-and-coming altcoins such as Solana (SOL), Cardano (ADA), and others, which recorded inflows of $4.3 million, $2.9 million, and $0.6 million, respectively. This change in focus suggests a significant shift in interest from Ripple (XRP) to other cryptocurrencies that are considered to have more promising prospects.

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Delays in ETF Approval

One of the factors contributing to the decline in fund flows into Ripple (XRP) is the delay in the approval of an Exchange-Traded Fund (ETF) based on Ripple (XRP). This delay has created uncertainty among investors, which in turn has affected fund inflows.

This uncertainty is compounded by the ongoing lawsuit between the US Securities and Exchange Commission (SEC) and Ripple, which has yet to see the light of day. This unresolved legal situation has made investors hesitant to place their funds on Ripple (XRP), opting to wait for the final outcome of the trial.

The dominance of Bitcoin (BTC) and Ethereum (ETH)

The dominance of Bitcoin (BTC) and Ethereum (ETH) in the market has also played a role in the decline of fund flows to Ripple (XRP). With Bitcoin (BTC) reaching new highs and Ethereum (ETH) attracting $326 million in fund flows in a week, these two cryptocurrencies have attracted attention and funds from investors who may have previously been interested in Ripple (XRP).

Bitcoin’s (BTC) price rise and other bullish factors have caused a shift in momentum to these two crypto giants, leaving little room for Ripple (XRP) to shine. This shows that in the world of crypto investing, market dynamics can change quickly, significantly affecting the flow of funds.

Conclusion

The decline in fund flows to Ripple (XRP) is a result of a combination of factors such as a decline in investor confidence, delays in the approval of financial products based on Ripple (XRP), and market dominance by Bitcoin (BTC) and Ethereum (ETH). Investors and market watchers should continue to monitor these developments to understand the future direction of Ripple (XRP) within the broader crypto ecosystem.

Also Read: Monero (XMR) Surprises Market with Spectacular Rise in May 2025, How Come?

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Coingape. Top 3 Reasons Why XRP Inflows Crash to $37 Million. Accessed on May 27, 2025
• Featured Image: Track Insight