New Data Reveals XRP’s Remarkable Position Among Top 5 Profitable Assets
Despite facing challenges in its price performance, XRP has managed to secure a spot among the top 5 mainstream assets with the highest profitability, as revealed by a report from behavior analytics platform Santiment.
This news comes at a time when XRP has struggled to surpass the $0.5 mark, leading to speculation about stablecoin alternatives. Despite occasional price increases in the broader market, XRP has been unable to reclaim this crucial price level for over two months since its drop below $0.6 on April 12.
However, the cryptocurrency has demonstrated resilience by maintaining support at $0.50. Nonetheless, investor concerns have lingered due to the lackluster price movements. Interestingly, data from Santiment indicates that a significant portion of XRP’s circulating supply is currently trading at a profit.
Santiment’s “Supply in Profit” metric plays a pivotal role in this revelation. The metric evaluates the current value of a token and compares it to its initial value when it first entered the blockchain. By using this measurement, analysts can determine whether a token is currently in profit or loss compared to its initial price.
According to the metric, Bitcoin (BTC) boasts the highest percentage of circulating supply in profit, primarily because it remains close to its all-time high price of $73,000 reached on March 14. Approximately 98.3% of BTC’s circulating supply is currently in profit. Ethereum (ETH) follows closely with 95.1% of its supply in profit.
Furthermore, Chainlink secures the third position on the list, with 86.8% of its supply boasting profitability, while Dogecoin ranks fourth at 82.2%, with an increase in price of 78.7% this year.
XRP emerges in fifth place, with a supply profitability ratio of 78.8%. Despite not performing as well as the other tokens on the list, this figure demonstrates XRP’s ability to generate profit. It is worth noting that XRP has declined by 15% this year, making it the only cryptocurrency on the list to experience a decrease since January.
The high profitability ratio of XRP can be attributed to two factors. Firstly, a significant portion of the circulating supply was released when the price was extremely low. Additionally, token releases often occur when the value of XRP is persistently low, further contributing to its profitability.
Notably, XRP experiences an inflation rate of approximately 200 million tokens per month due to Ripple’s escrow releases, accounting for 2.4 billion tokens per year. If these releases continue to coincide with low XRP prices, it could sustain the supply’s profitability.
For example, on May 1, Ripple released 500 million XRP when the token was trading at $0.5020. Given the current price of $0.5226, these tokens are now profitable. Similarly, XRP was priced at $0.51 when Ripple unlocked 1 billion tokens from escrow on June 1, making them profitable at the present value.
Despite its price struggles, XRP manages to demonstrate its profitability and resilience in the market, making it a noteworthy asset among investors.