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Here's Why XRP Had One of Its Best Years in 2022

Wed, 01/04/2023 - 13:00
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Gamza Khanzadaev
Even though price of XRP fell by 60% over the year, 2022 was still one of the best years for this crypto in terms of this metric
Here's Why XRP Had One of Its Best Years in 2022
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Despite the bear market that has flagged all of 2022, it has been one of the most successful years for XRP in terms of inflows into cryptocurrency-oriented investment products. This has not even been prevented by the ongoing litigation between the U.S. Securities and Exchange Commission and Ripple, where one of the key stumbling blocks is the "non-status" of XRP as a security.

XRP: Strong Bullish Scenarios Emerge, Will Price Rally in 2023?

So, according to a recent CoinShares report, $9 million flowed into XRP-oriented products in 2022, the second best result since 2017. Only 2021 went better than 2022 in the field for XRP, with a net inflow of $63 million. The total market value of XRP under management is now $32 million.

That said, XRP is not the only altcoin for which 2022 has seen similar success, with Solana (SOL) and Litecoin (LTC) also receiving large inflows.

Bigger picture

A very different picture can be seen for the market's two largest cryptocurrencies. For Bitcoin (BTC), last year was the third worst year for inflows, with $287 million. However, while BTC has inflows, albeit relatively small, investment products focused on Ethereum (ETH) have only seen a net outflow of 402 million in 2022.

Why Wall Street's Analysts Think Now Is the Time to Buy Bitcoin

In total, 2022 ended with an inflow of $433 million into cryptocurrency-oriented investment products, the lowest since 2018.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.