- The XRP-linked ETF defied the broader market decline with net inflows exceeding $1 billion.
- Ethereum is under significant downward pressure due to the whale exit.
- Broader markets are still suffering due to the liquidity crisis.
The cryptocurrency extended its weakness on Tuesday, with Bitcoin falling towards $85,000.
The value of all digital assets fell 3% over the past day to $2.96 trillion.
Sentiments are worsening daily due to lack of liquidity, as even fundamentally sound projects fail to maintain long-term upside.
Amid the bleak outlook, investors are becoming more defensive and institutional officials have reduced their exposure as they shift to the narrative that dominates the current environment.
This difference can be seen in the major altcoins in this case: XRP and Ethereum.
Let’s take a closer look.
XRP spot ETF inflows hit $1 billion.
Ripple’s token marks a rare corporate victory amid widespread market declines.
According to SoSoValue data, the cumulative inflows of XRP-linked exchange-traded funds have reached $1 billion.
This is an important milestone for the product, which launched on November 13th.
The XRP ETF in particular has seen consistent daily inflows since its debut.
The significant inflows within a short period of time indicate that professional investors are narrowing their focus and not exiting cryptocurrencies completely.
XRP’s compliant ETF structure is attractive to institutions seeking cryptocurrency exposure without having to deal with operational risk or custody.
Most importantly, inflows suggest a long-term positioning strategy rather than chasing short-term price movements.
Why XRP Stands Out
XRP’s institutional appeal lies in its improved regulatory clarity and clear use cases.
Narrative is everything in bearish sessions.
In fact, traditional investors will justify a payments-focused blockchain ecosystem faster than speculative or experimental narratives.
Additionally, ETFs provide transparency, compliance, and liquidity, which is critical for businesses looking to manage risk.
These features are valuable in volatile markets and have helped XRP-related products absorb pressure while their competitors endure outflows.
Meanwhile, XRP is trading at $1.92 after falling 7% last week.
ETH hit by massive sell-off
While the XRP community is cheering massive inflows, Ethereum is facing massive selling pressure as large holders reduce their exposure.
According to Lookonchain, BlackRock deposited 47,463 ETH, worth about $140 million, into Coinbase Prime.
The market interpreted this transaction as a preparation for selling.
At the same time, the Konstantin Lomashuk connected wallet sold 14,585 tokens worth about $42.71 million today, when ETH is trading at $2,928.
Lookonchain also revealed two whales this morning that dumped 14,000 tokens worth of Ethereum, worth approximately $40.82 million.
The size and timing of these moves have strengthened bearish sentiment towards the largest altcoins.
These transactions coincide with already weak markets, amplifying the downward momentum of the ETH price.
Ethereum is trading at $2,928 after falling 3% and 6% over the past day and week.