Despite its recent price struggles, XRP, the digital asset associated with Ripple, remains among the top 5 mainstream assets with the highest profitability. According to a report from analytics platform Santiment, XRP has retained its position despite failing to breach the $0.5 level for over two months.
The report indicates that despite XRP’s stagnant price movements, most of its circulating supply is currently trading at a profit. This resilience is notable, given the concerns surrounding XRP’s inability to surpass the $0.5 mark, leading to stablecoin teases.
Santiment’s Supply Profitability Metric
Santiment’s analysis focuses on its “Supply in Profit” metric, which compares the current value of a token to its initial value when it first appeared on the blockchain. This metric aims to determine whether a token is currently in profit or loss.
Bitcoin (BTC) leads the pack with 98.3% of its circulating supply in profit, closely followed by Ethereum (ETH) with 95.1%. Chainlink and Dogecoin secure the third and fourth spots, respectively, with profitability ratios of 86.8% and 82.2%.
XRP’s Current Position
XRP holds the fifth position with a profitability ratio of 78.8%, despite experiencing a 15% decline in price this year. This decline has made XRP the only cryptocurrency on the list to suffer losses since January. However, the high profitability ratio of XRP can be attributed to several factors.
Firstly, a significant portion of XRP’s circulating supply was released when its price was substantially lower. Secondly, token releases often coincided with periods of low prices, contributing to the high profitability ratio.
Ripple’s Escrow Releases
Ripple’s escrow releases also play a crucial role in maintaining XRP’s profitability. With an inflation rate of approximately 200 million tokens per month, Ripple’s escrow releases inject a substantial number of tokens into circulation.
Despite concerns about inflation, the timing of these releases often aligns with low XRP prices, ensuring that the released tokens remain profitable at current market prices. For instance, recent escrow releases in May and June coincided with relatively low XRP prices, contributing to its ongoing profitability.
Overall, while XRP faces challenges in price performance, its profitability metrics suggest underlying strength and resilience in the market.
