The cryptocurrency market experienced a blend of trading activities last week, with notable changes shaking things up. While some assets floundered, others surged, marking an interesting dynamic. One highlight was XRP, which captured institutional investors’ attention with significant inflows, whereas Solana (SOL) faced a decline as some institutions chose to exit.
According to CoinShares Digital Asset Fund Flows, a staggering $8.8 million flowed into XRP last week alone. This contributed to an impressive monthly total of over $288 million as bullish sentiment gained momentum within the community throughout December. While the previous week showcased even higher numbers, this uptick hints at a potential rebound in the broader market. In fact, since the start of this year, XRP’s inflows hit $430 million, inching closer to the anticipated $500 million by year-end, as key players show strong engagement.
One of the forces behind this shifting sentiment is the outcome of the U.S. elections, which sparked excitement regarding pro-crypto regulations. In fact, this shift propelled XRP’s market cap beyond $130 billion, allowing it to briefly surpass USDT as the third-largest cryptocurrency. The asset also enjoyed a spot as the most traded altcoin on Binance, enhancing investor confidence as we approach 2025. Ripple’s strategic partnerships for global cross-border payments and upcoming spot XRP ETFs in the United States are also central to this renewed optimism.
Meanwhile, the broader crypto space recorded mixed performance. CoinShares noted that recent price corrections led to a $17 billion decrease in total assets under management (AUM) for Digital Asset ETPs. Although that figure might raise eyebrows, it represents only 0.37% of the total AUM and ranks as the 13th largest single-day outflow on record. Previous larger outflows occurred back in mid-2022.
Unfortunately for Solana, things did not go as well. The asset suffered a loss of $8.7 million in the last week, with monthly outflows accumulating to $22 million. Once considered a favorite among institutional investors, Solana’s recent performance underscores the unpredictability in the crypto market.
In a contrasting light, Bitcoin basked in success with $375 million flow, helping its monthly numbers surpass $5 billion as investors maintain bullish strategies with eyes set on potential price growth for BTC in the coming year. More so, Ethereum also enjoyed a positive week, bringing in $51 million in inflows, adding to its cumulative annual growth.
As these dynamics unfold, it’s clear that the cryptocurrency landscape remains as fluid as ever. Investors will no doubt keep a close watch on how the tides turn, particularly with regards to XRP’s promising trajectory amid Solana’s struggles.
