A recent report from Santiment, a behavior analytics platform, reveals that despite its struggles with price, XRP is one of the top 5 mainstream assets with the highest profitability. Concerns have been mounting as XRP has been unable to surpass the $0.5 mark, leading to speculation about stablecoins. Since dropping below $0.6 on April 12, XRP has failed to reclaim this crucial price point for over two months, despite occasional price increases seen in the wider market.
Although XRP has managed to hold onto the $0.50 support level, indicating its resilience, investors remain anxious due to the lackluster price movements. Interestingly, Santiment’s recent findings show that a majority of XRP’s circulating supply is currently trading at a profit.
Santiment introduced a metric called “Supply in Profit,” which analyzes the current value of a token compared to its initial value when it was first introduced on the blockchain. This metric determines if the token is currently trading higher (in profit) or lower (in loss) than its initial price.
According to this metric, Bitcoin (BTC) has the highest percentage of circulating supply in profit, as it is trading close to its all-time high of $73,000 reached on March 14. Ethereum (ETH) follows with 95.1% of its supply in profit, while Chainlink and Dogecoin also have impressive profitability rates.
XRP is ranked fifth on the list, with a profitability ratio of 78.8%, despite its price decline this year. The high profitability ratio of XRP can be attributed to the release of a significant portion of its circulating supply when prices were low, as well as Ripple’s consistent escrow releases.
Ripple’s inflation rate of approximately 200 million XRP tokens per month from escrow releases could contribute to the supply profitability remaining high if these releases coincide with low XRP prices. For example, tokens released by Ripple in May and June are currently trading at a profit compared to their initial release prices.
Please note that this content is for informational purposes only and should not be considered financial advice. Readers are advised to conduct their own research before making investment decisions. The Crypto Basic does not take responsibility for any financial losses incurred.