Ripples XRP Decouples from Altcoins as Institutional Adoption Grows Can the Trend Hold?
Ripples XRP has outperformed most top cryptocurrencies this month. In the last 30 days, XRP has rallied by 52%, pushing the altcoins market capitalization to $178 billion. At press time, XRP traded at $3.12 after a 0.81% gain in 24 hours.
XRPs rally and the rising market interest have been triggered by several factors including the shifting regulatory climate in the US and rising institutional adoption.
XRP decouples from most altcoins
In its latest report, crypto analytics firm Santiment attributed XRPs gains to the launch of the RLUSD stablecoin. The stablecoin, which received approval from US regulators, is set to increase Ripples market share in the digital payment industry, which is, in turn, fuelling gains for the altcoin.
As ZyCrypto reported, Ripples President, Monica Long, anticipates that the demand for the RLUSD stablecoin will increase significantly this year. If this stablecoin continues to gain market share, it could bode well for XRPs price.
Besides RLUSD, the rising adoption by financial institutions and strategic partnerships could also drive XRPs gains in the coming months. One of these partnerships is with Ondo Finance to enable the tokenization of US Treasury securities on XRP Ledger.
Per Santiment, financial analyst Louis Navellier believes that major financial institutions could continue integrating Ripple within their systems, which will bolster investor confidence.
As more banks and payment networks explore using XRP for cross-border transactions, its demand and credibility in the market continue to rise, Santiment stated.
However, the report noted that despite the recent performance, XRPs ability to extend gains has received some skepticism from traders after the rally showed signs of stalling and the euphoria accompanying previous gains died down.
Moreover, while the new Trump administration could present a turnaround for crypto regulations, the recent appeal by the US Securities and Exchange Commission (SEC) on the case dealt a blow to Ripple and halted the tokens rally.
XRPs open interest plunges
Data from the derivatives market shows waning conviction among traders in XRP. This follows a notable decline in open interest, indicating that derivative traders are closing their positions on XRP.
According to Coinglass data, XRPs open interest has dropped to $6.12 billion, a notable decline from the all-time high of $7.62 billion recorded barely two weeks ago. Nevertheless, this OI remains elevated, with further increases set to support a price rebound.
Text source: ZyCrypto
