XRP Price Drops Amid ETF Demand Slowdown and Network Activity Cooling

XRP's price has been declining due to several factors. The token fell by 3.44% in the past 24 hours, extending its weekly loss to 6.4%. One reason for this drop is the slowdown in spot XRP ETF demand. According to Sosovalue, XRP ETFs recorded around $3.45 million in net inflows on August 6 but zero daily net inflows on August 7 and August 10.

This decline is also visible in total net assets, which fell from about $993.38 million on August 5 to $950.05 million on August 10. With less money entering XRP ETFs, the market has less buying support during periods of heavy selling. Additionally, network activity has cooled, with XRP Ledger transactions falling by around 44% in recent days.

The derivatives market has also added pressure, with $8.45 million worth of XRP positions being liquidated over the past 24 hours. Long positions made up $8.25 million, or 97.55%, while short liquidations stood at just $207,044. Despite this, XRP whales have been using lower price levels to increase their holdings.