A recent report from behavior analytics platform Santiment reveals that XRP is among the top 5 mainstream assets with the highest profitability, despite facing challenges in its price performance. Concerns have been raised about XRP’s inability to surpass the $0.5 level, leading to speculation about stablecoin implications. Since dropping below $0.6 on April 12, XRP has struggled to reclaim this important price point for over two months, despite occasional price increases seen in the overall market.
Despite the price struggles, XRP has managed to maintain support at $0.50, showcasing its resilience. However, investors remain concerned about the lackluster price movements. Interestingly, Santiment’s recent findings indicate that a majority of XRP’s circulating supply is currently trading at a profit.
Santiment introduced a metric called “Supply in Profit,” which compares the current value of a token to its initial value when it first appeared on the blockchain. This metric assesses whether the token is currently trading at a profit or a loss compared to its initial price. According to this metric, Bitcoin (BTC) has the highest percentage of circulating supply in profit, followed by Ethereum (ETH) and Chainlink.
XRP ranks fifth on this 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 fact that a significant portion of its circulating supply was released at a time when its price was very low. Additionally, the consistent release of tokens at low prices, along with Ripple’s escrow releases, has contributed to maintaining the supply profitability of XRP.
It is worth noting that XRP has an inflation rate of approximately 200 million tokens per month from Ripple’s escrow releases. This ongoing release of tokens at low prices has helped to keep the supply profitability of XRP high. For instance, tokens released by Ripple in May and June have proven to be profitable at the current price of XRP.
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 views expressed in this article are solely those of the author and do not necessarily reflect the opinions of The Crypto Basic. The Crypto Basic is not liable for any financial losses incurred.