Recent cryptocurrency swoon has boosted bitcoin ether and CoinDesk’s major indices to the point where they are posting moderate or negative returns over the past 365 days, an unenviable position that only XRP has managed to avoid.
As of Sunday, payments-focused
The CoinDesk 5 Index (CD5) rose just over 2%, making it the only other gainer, while ether posted a flat 2% gain. Meanwhile, rivals like solana and suffered heavy losses, both with drops of more than 36%. The CoinDesk Meme Index recorded the worst performance, with a 78% drop, reflecting the high price charged by the riskiest corners of the crypto market.
XRP is also the only major token that boasts a positive gain so far this year.
What makes XRP’s outperformance more impressive is that its price is down 36% from the all-time high of over $3.6 recorded four months ago. BTC, the leading cryptocurrency by market cap, has also fallen 24% since peaking above $126,000 on October 8.
Several catalysts, including regulatory developments, have contributed to XRP’s outperformance.
The resolution of the SEC’s lawsuit against Ripple, the fintech company that uses
On the technology front, Ripple’s launch of the
Ripple’s strategic partnerships in key regions such as the Middle East and its application for a US banking license have further strengthened XRP’s appeal, as evident from the debut of Canary Capital’s XRP exchange-traded fund (ETF) in the US last week. The fund debuted with the highest first-day volume of any ETF this year.
Leading industry observers are confident that XRP ETFs will be highly successful in attracting demand from institutional investors.
“I think it would be a huge, huge product. There’s a lot of interest in XRP,” Hunter Horsley, CEO of asset manager Bitwise, told CoinDesk TV. “There’s a lot of energy, excitement and interest around this.”
Horsley explained that there is currently more than $100 trillion in traditional financial avenues, and more of that amount is migrating on-chain. An ETF is often the first time many of those assets can gain exposure to a new asset. “If investors have the opportunity to trade and gain exposure to XRP, it will be a very useful and highly in-demand product,” he said.
Performance above cost
There’s an old saying: there’s no such thing as a free lunch, and that definitely applies to XRP.
While the token has outperformed several major cryptocurrencies, it has also been among the most volatile, according to data from CoinDesk.
XRP’s 365-day annualized volatility is 91%, compared to 44% for bitcoin. The only assets with higher volatility are the CoinDesk Meme index with 115.85% and Cardano with 100.55%.
However, with growing institutional interest and possible ETF approvals on the horizon, XRP’s volatility may decrease as it attracts more stable long-term capital.
