Attention people, recent on-chain metrics from Glassnode reveal a milestone for XRP: 99.6% of its circulating supply is in profit. This is an almost absolute profitability indicator, surpassing Bitcoin (BTC), which records 97%. This differential is significant, especially considering that XRP has experienced a vertical rally that took it to a peak of $3.64. 📈
The euphoria of XRP investors is not subjective; the percentage of the supply in profit is at an 18-month high, and it is one of the highest levels since the all-time high of $3.84 in 2018. This surge is not exclusive to retail; open interest in futures and 24-hour trading volumes have simultaneously escalated, suggesting a convergence of retail and institutional capital. 🐳
Comparatively, while Bitcoin has shown impressive growth of 70% and has surpassed $117,000, the distribution of profits among its holder base is more granular, reflecting greater adoption and longer holding cycles. XRP, in contrast, has concentrated profitability over a much shorter period, underscoring the inherent volatility and potential for exponential returns in assets with lower market capitalization, or during specific catalyst moments.
From a market perspective, these extreme levels of profitability, while reflecting a pronounced bullish sentiment, may also signal turning points or short-term profit-taking zones. However, the persistence of high interest in futures and steady volume could sustain the momentum. The eventual enactment of the CLARITY Act could serve as an additional regulatory catalyst, providing the necessary certainty for greater institutional integration and long-term price stability.
In summary, the current profitability metric of XRP is not just an anecdote, but a critical data point that invites a reevaluation of its positioning in the crypto ecosystem. Are we witnessing a structural change in the profitability dynamics among major digital assets, or is it a transient anomaly driven by macro and regulatory factors? The analysis of the coming weeks will be crucial to validate these hypotheses. 🧐$XRP $BTC
