XRP Profitability Hits 90%, Surpasses Ethereum and Chainlink

XRP’s profitability has seen a notable increase, reaching over 90% of its circulating supply. This significant milestone places XRP ahead of several leading altcoins, cementing its position as one of the most lucrative holdings in the current crypto market climate.

Analysis from Santiment, a blockchain analytics firm, revealed that the majority of XRP tokens in circulation were acquired at prices lower than XRP’s current market value. Despite the token’s relatively stable price performance over the past three months, this high level of profitability demonstrates solid investor returns and reflects growing confidence in the asset.

Compared to other top cryptocurrencies, XRP leads in terms of profitability, only second to Bitcoin, with 98.4% of Bitcoin’s supply currently in profit. In contrast, Ethereum trails with 71.5%, followed by Dogecoin at 77.9%, Cardano at 71.0%, and Chainlink at 80.5%.

The profitability rate is a valuable indicator in gauging investor sentiment. A majority of token holders being in profit may suggest an increased likelihood of sell pressure as some decide to take gains. On the other hand, when most wallets are in loss, it could indicate value-seeking behavior by new investors or long-term holders entering the market.

This surge in profitability is particularly striking considering XRP recently faced a 6% decline in value. Yet, the robust fundamentals indicated by on-chain data suggest potential for recovery, especially with the fading impact of regulatory uncertainties.

One of the most pressing developments influencing XRP’s trajectory has been the legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC). While the core aspects of the case are nearing resolution, recent procedural issues led Judge Analisa Torres to reject a joint settlement motion, causing a temporary delay in progress. Nonetheless, the worst seems to be behind Ripple, reducing a longstanding overhang on XRP’s market sentiment.

Institutional backing further signals market confidence. Nasdaq-listed VivoPower made headlines by announcing plans to establish a $121 million XRP treasury anchored to its business strategy, adding credibility to XRP’s utility in financial operations and reflecting serious institutional interest.

The XRP Ledger (XRPL) has also seen increased adoption, underscoring its growing relevance beyond speculation. A case in point is the Dubai Land Department’s move to utilize XRPL for a real estate tokenization initiative. At the same time, new stablecoins such as EURp, USDb, and XSGD have been launched on the ledger, expanding XRP’s use cases within decentralized finance and beyond.

Growing momentum is also evident in the trading products landscape. XRP-related financial instruments have gained traction among more sophisticated investors. For instance, the Chicago Mercantile Exchange (CME) recently rolled out XRP futures, attracting daily volumes of $15 million on launch day. Moreover, several filings for a spot XRP ETF have been submitted to the SEC, exemplifying increasing confidence in XRP as an investment asset.

Related: Expert Advice: Sell XRP If You’re Confused

In summary, XRP’s on-chain health, institutional interest, expanding utility, and legal clarity combine to form a strong backdrop for potential future gains. With over 90% of its supply profitable, XRP is not only outperforming prominent altcoins like Ethereum and Chainlink, but is also setting itself apart as a resilient and promising digital asset in today’s competitive crypto environment.