XRP Loses $13 Billion Market Cap in 24 Hours
- XRP erases $13 billion from market cap within 24 hours.
- Launch of U.S. spot XRP ETF by Canary Capital.
- Whale selloffs and broader crypto market dip contribute.
XRP’s market cap dropped by $13 billion within 24 hours, primarily driven by the launch of the first U.S. spot XRP ETF and significant whale selling activity.
The event highlights potential volatility tied to new financial products, impacting broader market sentiment as cryptocurrencies experience a collective $200 billion reduction in market capitalization.
XRP Market Cap Decline
The cryptocurrency XRP has seen a sharp decline, erasing $13 billion from its market cap in the past 24 hours. This sharp drop coincided with the launch of the first U.S. spot XRP ETF and extensive whale selling.
Canary Capital launched the first U.S. spot XRP ETF, known as XRPC. Large XRP holders offloaded around 1.4 billion XRP, impacting XRP’s price. No official statements from Ripple’s leadership have emerged at the time of writing.
Broader Market Impact
The dramatic market cap reduction affected the broader crypto market, which saw an approximately $200 billion reduction. The crypto sentiment index dropped significantly, reflecting risk-off behavior across key digital assets.
The launch of the XRPC ETF saw a robust $250 million in net inflows. Yet, selling activities have overshadowed positive ETF reception as market volatility persists, suggesting potential profit-taking among large holders. As Eric Balchunas notes, “Canary Capital’s spot XRP ETF attracted approximately $250 million in launch-day inflows, marking one of 2025’s strongest crypto ETF debuts.”
Future Outlook
Cryptocurrencies BTC and ETH also experienced declines, with declines over 5%. The crypto market’s drawdown increases concerns over extended lows.
Historical trends indicate “sell-the-news” effects may contribute to temporary volatility in ETF launches, positioning XRP’s future movements dependent on sustained institutional interest. Analysts suggest these inflows could influence longer-term price recovery. For instance, JPMorgan Estimates indicate a spot XRP product could attract up to $8 billion; forecast price could reach $5 by late 2025 if ETF-driven inflows persist.
