- Lawyer Deaton predicts XRP surpasses ETH by EOY; new leveraged ETF starts strong
- On-chain data shows surge in retail interest, short-term XRP holders dominate
- ANALYSIS: High short-term holder ratio, leveraged ETF success may signal risk
Recent developments around XRP are fueling talk of resilience and a potential comeback, despite lingering skepticism from some market watchers. Fueling this optimism, prominent crypto lawyer John Deaton, known for representing XRP holders against the SEC, offered a bold prediction: XRP could overtake Ethereum (ETH) in market value by year-end.
“Despite all the negative sentiment from people within the crypto industry,” Deaton commented, adding he has “always maintained that XRP has much more appeal than industry players want to admit.” He highlighted strong community support, evidenced during the Ripple lawsuit, as a sign of the token’s underestimated base.
Leveraged XRP ETF Debuts
Strongly adding to the positive signals was the launch of Teucrium’s 2X Long Daily XRP ETF (ticker: XXRP) on the NYSE Arca exchange.
The fund saw $5 million in trading volume on its first day. Bloomberg’s Senior ETF Analyst Eric Balchunas noted this volume placed it in the top 5% of all ETF launches historically.
For comparison, this day-one volume was four times higher than the 2X Solana ETF (SOLT) achieved at its launch. While far below the massive $1 billion debut of BlackRock’s spot iShares Bitcoin Trust (IBIT), Balchunas called the XXRP debut “very respectable,” especially for a leveraged crypto product outside the Bitcoin and Ethereum mainstream.
Related: Banking Giant StanChart Outlines XRP’s Path to $12.50 by 2028
Retail Interest Surges, But Raises Questions
XRP’s recent traction appears driven significantly by retail traders. Data from Glassnode shows XRP futures volume jumped 78% in just the past week, showing renewed trader interest. Perhaps more significantly, XRP’s Realized Capitalization – a measure of the total value based on when coins last moved – nearly doubled during a February price rally, rising from $30.1 billion to $64.2 billion, pushed mainly by new retail investors entering the market.
Glassnode also revealed that tokens acquired within the last six months now make up a striking 62.8% of XRP’s total Realized Cap, a huge jump from just 23% earlier this year.
Context: This heavy concentration of newer holders, alongside success primarily in a leveraged ETF, points more towards potential market fragility and speculative activity than durable strength.
Related: Ripple Bets $1.25B That XRPL Can Handle TradFi Volume via Hidden Road
Supply Profitability Remains High Despite Dip
These potential risks and recent price dips haven’t stopped XRP holders from being broadly profitable. As of early April, Glassnode data showed 81.6% of the total XRP supply was still held in profit, second only to TRON (TRX) at 84.6% among major assets.
XRP’s profitability figure has dropped 10.4 percentage points year-to-date, but it still points to widespread gains across its holder base, which could also translate to potential selling pressure.
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