The crypto industry still struggles with a less-enthusiastic sentiment due to possible interest hikes by the Federal Reserve. However, institutional investors, such as XRP, Solana (SOL), and Stellar (XLM), have indicated more interest in altcoins. The change has created more gains on these altcoins-based products in 2023.
Altcoin-Based Products Witnessed More Increase
A recent CCData report revealed a remarkable surge in XLM-based products. Following a 62.7% increase, its assets under management (AUM) climbed to $17.3 million.
Grayscale witnessed significant growth for its XLM-based product, which hit a premium of more than 330%. Similarly, XRP and SOL products posted a surge of 33.2% and 55.7% in their assets under management.
While XRP-based products now record a total of $65.7 million in AUM, SOL-based products boast a cumulative $87.8 million in AUM.
ProShares’ Bitcoin Strategy ETF (BITO) still maintains the top dominance in product volumes amid the surge witnessed by other assets in the market. BITO saw a daily volume of $179 million which indicates a spike of 2.96% from the last month.
The trend is maintained by Grayscale’s Bitcoin (BTC) and Ethereum (ETH) trust products that posted $83.0 million and $31.0 million as their respective average daily volumes. These represent 29.7% and 60.4% surges for the respective products.
A Surge for XRP And Others Following A Recent US Court Ruling
The SEC initiated a lawsuit against the blockchain company Ripple in December 2020, accusing its violation of securities laws. The regulator alleged that Ripple’s sales of XRP were unregistered securities, but Ripple maintained a contrary stance on the motion.
On July 13, the judge stated that XRP sales to retail investors on exchanges are not securities. Judge Torres’ decision on the lawsuit between the US Securities and Exchange Commission and Ripple gave XRP a positive price push.
Following the news about the court’s decision, XRP’s price spiked by over 60% in a few hours to mark a historic rally for the token. Similarly, almost all crypto assets tuned in an impressive performance to play in the green.
Solana (SOL), Cardano (ADA), and other prominent altcoins participated in the bullish run, with many investors indicating more interest in the assets.
The change brought a positive twist to the crypto market, which has been under enhanced regulatory scrutiny from US regulators following its 2022 market downturn.
The firm behind XRP, Ripple, has always made a clear distinction between its native token XRP which powers most of its projects and the XRP Ledger network. Also, some developments from Ripple have positively impacted the XRP price trends.
Amid the challenges in the crypto industry, a spike in institutional interest in some altcoins products proves the sustainability of crypto as future money.
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