XRP Spot Activity Jumps 2,490% in Inflow Spike, What Changed?

XRP has recently seen significant spot activity, with spot flows for the cryptocurrency rising 2,490% in an eight-hour period, according to CoinGlass data. Despite this, XRP net flows remain positive, suggesting increased selling potential.

This follows a recent selloff in the market, which wiped out more than $1.2 billion in liquidations on Friday, with XRP marking four consecutive days of decline.

In the last 24 hours, XRP flows, which refer to assets leaving spot exchanges, reached $247.28 million, according to CoinGlass. data. This almost offsets the inflows, referring to XRP deposited in the spot markets, which reached $261.24 million. This difference yields a positive net cash flow of $13.97 million, indicating predominant sales activity.

On Thursday, Canary XRP ETF, the first purely 33 Act fund, launched in the United States. The price of XRP it rose to $2.52 before the launch only to drop to $2.27 afterwards.

Some investors could sell their assets, which could have contributed to the fall, to buy in the form of ETFs, which offer tax advantages under the current rules in the United States.

Canaries XRP ETF with the ticker XRPC topped $26 million in trade within 30 minutes of launch, reflecting the interest in the traded fund. XRPC recorded $58 million in daily volume, the most of any ETF launched this year (out of 900), surpassing Solana Bitwise ETF’s $57 million.

At the time of writing, XRP was trying to make up for the previous day’s losses, down 0.09% in the last 24 hours to $2.26.

XRP is seeing increased whale activity

XRP has seen a surge in whale activity over the past 24 hours, coinciding with the launch of the Canary XRP ETF and selling pressure in the market.

Blockchain data tracker Whale Alert reports three transactions of 96,269,897 XRP ($222,827,469), 96,137,559 XRP ($222,956,271) and 55,000,000 XRP ($126,258,954) unknown between the walls.

In a separate transaction, 96,152,284 XRP worth $223,335,587 was transferred from an unknown wallet to crypto exchange Coinbase.