XRP Bleeds $76M in Weekly Outflows as Capital Rotates Into Ethereum, Solana ⋆ ZyCrypto

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The recent CoinShares weekly report revealed that XRP products recorded outflows last week, a stark contrast from Ethereum and Solana, which had noticeable inflows. While this divergence could signal that capital is rotating into other altcoins, XRP’s bullish momentum over the last week has remained strong, following a nearly 7% weekly gain and a surge in open interest to more than $1.2 billion.

XRP Products Record Outflows as Crypto Market Rebounds

Data from CoinShares shows that last week, XRP recorded $76 million in outflows. This marked the second consecutive week of outflows for XRP products per the report. This performance failed to mirror that of other assets, such as Bitcoin, Ethereum, and Solana, which continue to amass interest from institutional investors.

During the week, Ethereum products recorded $315 million in outflows, while Solana recorded $9 million in inflows. Other altcoins, including SUI and Chainlink, also recorded inflows of $3 million and $2.65 million, respectively.

Data from SoSoValue also shows that spot XRP ETFs have been in the red for the last two consecutive weeks, with outflows during this period totalling $32 million. Despite this, XRP ETF’s net assets have remained above $1 billion. 

XRP Price Surges as Open Interest Hits $1.2B

While institutional interest in XRP has waned, retail interest has remained noticeably high, as seen in the price surge over the last seven days. Per CoinMarketCap data, XRP has gained by 7.59% in seven days to trade at $1.50 at press time, with its market cap reclaiming $94 million.

The gains could be attributed to rising demand, as trading volumes rose more than 70% to $5.2 billion. On the other hand, the open interest has also increased to $1.2 billion according to Coinglass data, suggesting that traders have been actively opening derivative positions to position themselves for future gains.

At $1.2 billion, XRP’s open interest is the highest in six weeks, and as it continues to rise in tandem with the price, it will signal a resumption of bullish momentum. Besides, the funding rate is positive, a sign that most traders are opening long positions, anticipating further price surges.

Despite these gains, the market sentiment has yet to fully shift from bearish to bullish. The crypto fear and greed index stood at 28, indicating fear, even as prices surge.