A recent report from Santiment, a behavior analytics platform, reveals that despite XRP’s struggles with its price, it still remains one of the top 5 mainstream assets in terms of profitability.
The concerns surrounding XRP’s inability to surpass the $0.5 mark have led to speculations about stablecoins. Since falling below $0.6 on April 12, XRP has been unable to reclaim this crucial price level for more than two months, despite occasional price increases seen in the overall market.
Despite the stagnant price movements, XRP has managed to hold on to the $0.50 support level, showcasing its resilience. However, investors remain anxious due to the lackluster performance of the cryptocurrency. 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. 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 of 15% this year.
XRP’s high profitability ratio can be attributed to two main factors. Firstly, a significant portion of the circulating supply was released when the price of XRP was very low. Secondly, the token releases often coincide with periods of low prices due to XRP’s consistently undervalued status.
With an inflation rate of approximately 200 million tokens per month from Ripple’s escrow releases, XRP could continue to maintain its supply profitability. Recent token releases by Ripple have proven to be profitable at the current price of XRP, further contributing to its high profitability ratio.
It is important to note that this content is for informational purposes only and should not be regarded as financial advice. Readers are advised to conduct thorough research before making any investment decisions. The opinions expressed in this article are solely those of the author and do not necessarily reflect the views of The Crypto Basic. The Crypto Basic is not liable for any financial losses incurred.