XRP Trails in Altcoin ETF Race, Hype Fades: Analyst Warns ‘Volatility Ahead’

Bloomberg ETF analysts Eric Balchunas and James Seyffart have shared their updated approval odds for spot altcoin ETFs in 2025, with XRP having the lowest chance. The US SEC recently recognized Litecoin’s ETF filing, improving its approval prospects. Amid these developments, XRP’s price has remained steady and is aiming to break the $3 mark again.

On the Thinking Crypto podcast, Brian from Santiment recently shared details into the performance of XRP, explaining that its utility is supported by strong on-chain metrics. While there was a significant surge at the beginning of the month, XRP’s performance has since come back down to more neutral levels. 

This is typical after periods of high volatility, such as the price spikes during Trump’s election and the rise in mid-January. Transaction volumes, active addresses, and circulation have all returned to a more stable state, indicating that the initial hype around XRP has died down.

Buying Opportunity Amid Volatility

For those looking at shorter-term investment opportunities, there’s potential to enter XRP at a favorable moment. Recent market dips have led to negative returns for shorter-term traders, with a -13% return for wallets active in the past 30 days. 

This could be seen as an opportunity to buy into XRP at a historically low point, especially as prices have dropped compared to where traders were in profit earlier. The key is to understand market sentiment—buy low in relation to other traders’ losses, and sell high when others are in profit.

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However, Brian flags a potential concern for long-term holders of XRP. Any address that’s been active in the past year is up 55% on average, which shows significant gains have already been realized by many investors. For those planning to hold XRP for several months or longer, the market could experience some volatility as it may face pressure from already realized profits.