Altcoins
XRP, ETH tap massive funds on ETF bets while SOL lags
As ETH inflows were worth $26 million, XRP had $2.2 million in its account.
- Investment products connected to XRP and ETH registered high inflows.
- Social Dominance fell, suggesting that the cryptocurrencies are below the local top.
XRP and Ethereum [ETH] were the only notable altcoins that recorded millions of dollars in digital asset inflows, CoinShares revealed. According to the report published on the 15th of January, the total inflows last week were worth $1.18 billion.
Remember that the said week was the same one that saw the U.S. SEC approve all Bitcoin [BTC] spot ETFs.
However, CoinShares noted that the fund flows were not as much as the season the futures ETF got the green light. As of then, the total inflows were around $1.5 billion.
For XRP, inflows rose to $2.2 million. ETH, on the other hand, registered inflows worth $26 million. The reason for the significant increase for both cryptocurrencies was because of the speculation that a spot ETF could also be approved in their favor.
Source: CoinShares
Also, for the second consecutive week, Solana inflows decreased. In the previous week, AMBCrypto had explained how SOL was left hanging because of its price correction.
Now that the value recovered, investors did not seem convinced enough to put their money into investment products linked to the token.
Despite being unable to flip the inflows of the Bitcoin futures ETF period, the report noted that trading volume soared:
“ETP Trading volumes did break records though, trading US$17.5bn last week, the highest on record, compared to an average of US$2bn per week in 2022. “
Furthermore, ETH’s price action seemed part of the basis investors added capital to its investment products. For instance, the altcoin price was one of the biggest gainers after the SEC declared the approval.
Also, many analysts as AMBCrypto found, noted that liquidity would begin to rotate to the altcoin.
As a result, ETH’s value rose to $2,700. But at press time, the coin price had decreased to $2,513. It was a similar case with XRP as its price rallied to $0.62 before its recent decline to $0.57.
Source: Santiment
In terms of Social Dominance, XRP hit some peaks between last week and the time of writing. However, at press time, the Social Dominance had fallen to 09.22%.
Like XRP, the metric, in ETH’s terms, also had a similar trend.
Realistic or not, here’s XRP’s market cap in ETH terms
But as of this writing, its reading had dropped to 5.88%. This decrease suggests that discussion around the cryptocurrencies which once heightened, had cooled down.
Regarding the price action, it signifies that the values were not overheated or close to the local top. So, in the short term, it is likely to see significant jumps in their prices.
Source: Santiment
