Data shows XRP remains in top five high-yield assets despite difficulties

The report from behavioral analytics platform Santiment confirms that despite its price woes, XRP remains one of the most profitable assets among the top 5 mainstream assets.
The recent disclosure comes against the backdrop of XRP’s inability to break above the $0.5 level, sparking mockery of the stablecoin. Since falling below $0.6 on April 12, XRP has failed to recover to the key price threshold for more than two months, despite occasional price gains seen in the broader market.
However, XRP has held support at $0.50, a testament to its resilience, but investors are concerned about lackluster price action. Interestingly, a recent disclosure by Santiment confirms that the majority of XRP’s circulating supply is currently trading at a profit.
Santiment’s Supply Profitability Metric
The on-chain analytics resource provides data on its “profitable supply” metric. For those unfamiliar, this metric calculates the current value of a token and compares it to its initial value when it first appeared on the blockchain. This metric assesses whether the token’s current value is above (profit) or below (loss) its initial price.
According to this indicator,
Bitcoin (BTC)
As it nears its all-time high price of $73,000 set on March 14, 98.3% of its circulating supply is in profit, while Ethereum (ETH) is close behind with 95.1% of its supply in profit.
Interestingly, Chainlink is in third place with its current price of over $17 and a supply profitability ratio of 86.8%. Meanwhile, Dogecoin’s profitability is 82.2%, and its price has risen by 78.7% this year. Dogecoin’s redemption came in March when the price surged to 87.5%, breaking through multiple resistance points.
XRP Proudly Holds a Supply Profitability Ratio of 78%
The data further noted that despite not performing as well as other coins on the list, XRP ranked fifth with a profitability ratio of 78.8%. Notably, at its current price of $0.5226, XRP has fallen 15% this year, making it the only cryptocurrency to suffer a drop since January.
XRP’s high profitability may be due to two factors. First, most of the circulating supply was released when prices were extremely low. Second, token releases tend to coincide with low prices, which is due to persistently low values for XRP.
It is worth noting that XRP has a monthly inflation of approximately 200 million tokens, which originates from Ripple’s escrow release. This equates to 2.4 billion per year. If each monthly release coincides with low XRP prices, this phenomenon could keep supply profitability high.
For example, Ripple released 500 million XRP on May 1, when XRP was trading at $0.5020. At the current price of $0.5226, the coins are currently in profit. Additionally, when Ripple unlocked 1 billion tokens on June 1, XRP was trading at $0.51. These tokens are now in profit at current prices. Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may include those of the author and do not necessarily reflect the views of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.