A recent report from the behavior analytics platform Santiment has revealed that XRP is among the top 5 mainstream assets with the highest profitability, despite facing challenges with its price. Despite concerns over XRP’s inability to surpass the $0.5 mark, causing speculation about stablecoins, the cryptocurrency has struggled to recover since dropping below $0.6 on April 12. Despite occasional price increases in the broader market, XRP has failed to reach the crucial price threshold for over two months.
Although XRP has managed to hold onto the $0.50 support level, demonstrating its resilience, investor anxiety remains high due to lackluster price movements. Interestingly, Santiment’s recent findings show that most of XRP’s circulating supply is currently trading at a profit.
Santiment’s Supply Profitability Metric analyzes the current value of a token compared to its initial value when it first entered the blockchain. 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 the list with a profitability ratio of 78.8%, despite its price decline this year.
XRP’s high profitability ratio can be attributed to the fact that most of its circulating supply was released when the price was low, and token releases coincided with low prices. Ripple’s escrow releases contribute approximately 200 million tokens per month, totaling 2.4 billion tokens per year. If these releases occur when XRP prices are low, it can maintain supply profitability.
For example, when Ripple released 500 million XRP on May 1 at a price of $0.5020, these tokens are now profitable at the current price of $0.5226. Similarly, 1 billion tokens released from escrow on June 1 at $0.51 are now profitable at the current price.
It is important to note that this information is for educational purposes and should not be considered financial advice. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic does not take responsibility for any financial losses incurred.