XRP Underperforms Amidst Crypto Market Rally as ETFs Draw Investment

XRP sees a 5% drop as major cryptocurrencies rise.

In the past week, XRP experienced a decline of approximately 5%, bringing its price down to around $1.03, while leading cryptocurrencies such as Bitcoin, Ethereum, and Solana saw gains of between 1% and 4%. Overall, the cryptocurrency market rose by 1.4%, with the total market capitalization reaching $2.19 trillion.

Despite XRP-focused exchange-traded funds (ETFs) attracting net inflows for four consecutive weeks, the latest figures show a significant decrease, with inflows dropping nearly 93% to about $1 million. This contrasts sharply with the hundreds of millions drawn to Bitcoin and Ethereum funds.

Market analysts attribute XRP's lackluster performance to ongoing regulatory uncertainty, particularly surrounding the delayed discussions on the CLARITY Act, which is seen as vital for clarifying XRP's regulatory status and encouraging institutional investment. A vote on this legislation is not expected until at least mid-September.

Iliya Kalchev, an analyst at Nexo, noted that while XRP's order flow remains substantial, the volume metrics suggest a phase of quiet absorption rather than an outright breakout or capitulation. Long-term outlooks, however, remain positive. Jake Claver, chairman of Digital Ascension Group, expressed optimism about XRP's future role in global finance, suggesting it may be recognized as a tier-one asset by the Bank for International Settlements (BIS).