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On-chain data shows a large portion of the XRP Realized Cap is in the hands of investors who got in during the last six months. Here’s what this could mean for the asset.
XRP Investors Younger Than Six Months Have Significantly Increased Realized Cap Share
In a new post on X, the on-chain analytics firm Glassnode has discussed how the Realized Cap of XRP has changed recently. The “Realized Cap” here refers to an indicator that, in short, keeps track of the total amount of capital that the holders of the asset as a whole have invested into it.
Changes in this metric, therefore, correspond to inflows and outflows that the cryptocurrency is observing. Below is the chart shared by the analytics firm that shows the trend in the Realized Cap for XRP over the last few years.
As displayed in the above graph, the XRP Realized Cap has shot up during the past few months, implying that a large amount of capital has flown into the cryptocurrency. More specifically, the asset has seen the metric double from around $30.1 billion to $64.2 billion.
In the same chart, Glassnode has also attached the data of the indicator for the young investor age groups. It would appear that the capital held by cohorts like 1-month to 3 months and 3 months to 6 months has spiked recently, which makes sense considering the growth in the aggregated Realized Cap has come during these windows.
According to the analytics firm, this short-term capital spike is a sign of retail-led momentum. The momentum appears to have cooled off, however, as the metric has no longer been growing as sharply recently.
A consequence of all the fresh capital inflows is that XRP has seen a shakeup in investor dominance. As another chart shared by Glassnode shows, the new investors, comprising all the age bands under 6 months, have witnessed their Realized Cap share blow up.
Prior to the new inflows, this cohort controlled just 23% of the cryptocurrency’s Realized Cap, but today that value has grown to 62.8%. This means that 62.8% of the entire capital invested into the coin has come at price levels of the last six months.
Given that XRP is currently trading under the prices that it has been at for most of this window, a lot of these holders would be underwater. “This rapid concentration in new holders reflects strong retail involvement – but also raises the risk of fragility, as many hold elevated cost bases,” notes the analytics firm.
From the chart, it’s apparent that these are the same conditions that led to a top during the last two bull markets. With inflows slowing down as the price declines, it’s possible that the same pattern may once again be forming for XRP.
XRP Price
With a plunge of more than 8% in the last 24 hours, XRP has retraced its latest recovery as its price has returned to $1.78.
Featured image from Dall-E, Glassnode.com, chart from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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