Investment products for XRP, the native crypto asset of the Ripple network, have recorded the 16th consecutive week of institutional inflows since the start of 2023.
According to data analyzed by CoinShares in its latest Digital Asset Fund Flows Weekly Report, XRP saw $0.5 million in inflows during the past week.
XRP Sees Inflows for the 16th Week
CoinShares found that digital asset investment products saw inflows of $29 million following three weeks of outflows. Bitcoin recorded the highest influx of $27 million, with its short funds experiencing outflows of $2.7 million.
Bitcoin’s dominance was followed by Ethereum’s, which led altcoins with inflows of $2.5 million, Uniswap with $0.7 million, XRP with $0.5 million, and Solana with $0.4 million. XRP’s inflows represent 12% of its assets under management (AUM). The asset’s AUM has spiked by 127% since the beginning of the year.
In terms of regional activity, Canada saw the most inflows of $24 million, followed by Switzerland with $8 million and the United States with $0.9 million. Despite Canada’s notable growth, the country is behind others from a year-to-date perspective.
CoinShares deduced that the improved investor sentiment was due to the recent U.S. inflation data, which fell slightly below expectations, raising suspicions that a September rate hike would not happen. The data also suggests that the broader crypto market remains supportive despite low trading volumes.
XRP Gains Market Dominance
While XRP records constant inflows, the digital asset is also gaining significant popularity in the crypto space. CryptoPotato reported that a CryptoCompare study found the XRP Ledger (XRPL) to be the fastest and most cost-effective blockchain network for payments, making it a more sustainable choice for businesses seeking quick and affordable payment solutions.
Compared to Bitcoin’s average transaction processing time of 10 minutes, the XRPL handles transactions in 3.3 seconds with a cost of $0.00003. This is also significantly better than Ethereum’s 15 seconds and Cardano’s 20 seconds.
Data from CoinMarketCap shows that XRP has gained market dominance and is currently the fifth-largest cryptocurrency by market cap, a feat the digital asset attained since Ripple Labs won a partial victory in a three-year-long legal battle with the U.S. Securities and Exchange Commission (SEC).
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