Market Overview
In a remarkable display of resilience, XRP and Cardano have emerged as unlikely heroes during what has become the crypto market’s most severe investment exodus on record. According to the latest CoinShares report, digital asset investment products have experienced an unprecedented five-week streak of outflows totaling $6.4 billion, with the broader crypto market facing significant downward pressure.
Record-Breaking Outflows
The magnitude of this market exodus is staggering, with $1.7 billion exiting funds in just the past week. This persistent negative sentiment has resulted in a dramatic $48 billion reduction in total assets under management (AuM) since the downturn began. Bitcoin bore the brunt of the selling pressure, accounting for 80.5% of total withdrawals with $5.4 billion in outflows over the five-week period.
Geographic Distribution of Fund Flows
- United States: -$1.16 billion (93% of total outflows)
- Switzerland: -$528 million
- Germany: +$8 million
- Australia: +$1.6 million
- Brazil: +$4.2 million
- Hong Kong: +$0.7 million
XRP and Cardano: The Outliers
In a surprising turn of events, XRP and Cardano have demonstrated remarkable strength, attracting inflows while other assets faced severe selling pressure. XRP led with $1.8 million in positive inflows, while Cardano secured a modest but significant $0.4 million in new investments. This performance coincided with XRP’s impressive 15% price surge last week.
Market Implications
The contrasting performance of XRP and Cardano against the broader market suggests a potential shift in investor sentiment toward alternative blockchain platforms. This divergence could signal a broader market rotation as investors reassess their crypto portfolio allocations in response to changing market dynamics.
Source: CoinShares Weekly Report