ETF Inflows Fail to Lift XRP Price Amid Growing Whales Influence
The recent surge in XRP's price may have been fueled by exchange-traded funds (ETFs), but they are not the primary drivers of its value. According to recent data, daily net inflows into spot XRP ETFs jumped a staggering 72% from August 24 to August 25, reaching an all-time high of $23.87 million and propelling total assets under management to $1.46 billion.
However, despite this massive influx of capital, the price of XRP actually declined by about 4% over the past 24 hours, correcting to $1.3783 on Wednesday. This paradox highlights a crucial truth: ETFs can stabilize and smooth out volatility in XRP's price, but they do not act as growth drivers.
So what is behind the recent rally? The answer lies in on-chain activity, which is attempting to digest the end of a massive 20-month depression. Large strategic players have been buying up XRP, accumulating nearly 500 million tokens in a single transaction before last week's surge.