XRP Beats Ethereum in an Unexpected Way

The impressive performance of XRP in 2025 has created a remarkable situation in the market. After a strong bullish run that started in November last year, 80% of the total circulating supply of this cryptocurrency is now in a profitable state. However, despite achieving significant gains, on-chain data shows that most of these holders are still holding their positions, betting on even higher prices in the future. What Does the On-Chain Profitability Index Indicate? Glassnode data shows that the price of XRP over $2 is three times higher than the baseline price before the bullish rally in November. This means that the initial XRP investors are sitting on gains of over 300%. Most of them are holding their tokens, expecting more bullish phases. However, a trend that began in early June highlighted realized profits at $68.8 million per day, signaling a wave of distribution from early holders. Analysts suggest that some holders are locking in profits after a significant bullish run.

Meanwhile, on-chain data shows that the funding rate of XRP is currently positive, with a value of 0.0053%. This indicates the bullish sentiment of traders in the XRP futures market, as most of them are betting that the price of this cryptocurrency asset will rise higher. Typically, a positive funding rate signals optimistic sentiment, with buyers dominating over sellers. Why is low trading volume considered a bullish trend? It is important to note that daily active addresses and volume on XRP have decreased, remaining below $1 billion. This may support the impression that most investors are opting to hold their tokens instead of selling them. It could indicate confidence in the expectation of higher prices and sometimes, a calm period before significant moves in the cryptocurrency market. XRP outperformed Ethereum in 2025, when Ethereum only had 61% of its total supply in profit. Investors looking to allocate capital may view this profit gap as an important signal. It could drive demand for XRP, especially with the cryptocurrency community's expectations for a higher price target for the digital asset.