XRP Price Declines 18% as Exchange Reserves Reach July 2023 Lows
XRP has faced recent pressure, declining 18.3% over the past month after peaking above $3.40. It currently trades at $2.06, with reduced investor activity.
XRP On-Chain Activity Slows
- XRP Ledger activity has decreased by 80% since December.
- Futures market open interest has dropped approximately 70% from its highs.
- The Estimated Leverage Ratio has significantly declined.
- XRP’s price has only fallen about 35% from its peak, less severe than Ethereum's 60% drop.
- Exchange Reserves are at their lowest since July 2023, indicating fewer tokens for sale.
- Stable pricing may suggest growing long-term confidence in XRP.
Institutional Developments
- HashKey Capital launched the first XRP Tracker Fund in Asia, backed by Ripple as an anchor investor.
- The fund aims to attract institutional capital and may transition into an ETF.
- This collaboration is expected to lead to tokenized investment products and DeFi solutions.
Despite near-term challenges, decreasing exchange reserves and increasing institutional interest may support XRP’s recovery as the broader market stabilizes.
