XRP Hot Capital on Fire: Record Inflows Hint at Explosive Price Action Ahead

XRP Hot Capital on Fire: Is a Major Rally Incoming?

According to recent statistics from the blockchain analytics platform Glassnode, XRP has experienced a noticeable increase in trade activity. According to the platform’s most recent data, short-term investment inflows, or hot capital, for XRP increased from $0.92 billion on April 20 to $2.17 billion by April 28. In less than a week, this is a 134.9% increase.

What Is Hot Capital in Crypto?

Newly purchased cryptocurrency assets that are usually held for less than a week are referred to as hot capital. As a gauge of short-term investor interest and trading activity, these funds frequently reflect speculative trades and rapidly fluctuating investments.

Glassnode Graphic Signals Return of Short-Term Crypto Activity

This increase is evident from Glassnode’s Realized Cap by Age graphic. The chart’s deeper colored regions, which stand for short-term holdings, have greatly increased in size, suggesting that short-term traders and speculators are once again active.

XRP Hot Capital Rises Again as Market Sentiment Improves

Even with this latest surge, XRP’s hot capital is still far below its peak. XRP’s hot capital hit $7.66 billion in December 2024, which is over 72% more than it is now. Even though the current $2.17 billion inflow suggests that interest is growing, XRP hasn’t yet recovered the kind of speculative velocity it had in the latter part of last year.

However, the recent increase indicates that the market sentiment is getting better. Due to both particular advancements inside the XRP ecosystem and more general changes in the cryptocurrency industry, short-term investor interest is increasing once more.

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