XRP Inflows Crash 83% But Maintain Second Place as Crypto Market Faces Massive Outflows

• XRP inflows dropped 83% from $190 million to $31.3 million but still ranked second among altcoins behind Ethereum.

• The crypto market saw $223 million in total outflows driven by Fed policy concerns and weak U.S. job data.

• XRP strengthened due to positive SEC developments and the rumored August 15 lawsuit deadline.

The cryptocurrency market experienced severe turbulence last week, with digital asset fund flows revealing dramatic shifts in investor sentiment. XRP witnessed an 83% decline in weekly inflows, dropping from $190 million to $31.3 million, according to CoinShare’s latest Digital Assets Fund Flows report.

Despite the significant crash, XRP remained the second-largest weekly gainer among altcoins, trailing only behind Ethereum’s $133.9 million inflows. The Ripple-backed token demonstrated remarkable resilience compared to other digital assets during the market downturn.

Market-Wide Outflows Reach $223 Million

The broader altcoin market faced substantial pressure, recording $223 million in total outflows. This reversed the positive momentum from early-week inflows of $883 million. Bitcoin led the decline with $404 million in outflows, marking its worst performance since April 2024.

Solana emerged as another survivor of the market crash, securing $8.8 million in weekly inflows and maintaining $852 million in year-to-date flows. However, most other altcoins, including Sui and Litecoin, contributed to the negative trend.

Despite the recent setback, Bitcoin’s year-to-date performance remains strong at $20 billion in net inflows. The cryptocurrency market’s total outflows highlighted the scale of capital flight during the volatile period.

Fed Policy and Economic Data Trigger Crypto Selloff

Multiple macroeconomic factors contributed to the market downturn. The Federal Reserve’s hawkish comments during the FOMC meeting and unchanged interest rates sparked investor concerns. U.S. July employment data fell below expectations, adding to market uncertainty.

August 1 marked a particularly challenging day with outflows exceeding $1 billion, demonstrating sharp capital exits across digital assets. New tariff announcements and whale selling activity intensified market volatility.

The reciprocal tariffs scheduled to take effect on August 7 could continue affecting cryptocurrency markets in the coming days. These developments created a perfect storm for digital asset price declines.

XRP’s relative outperformance stems from several positive developments. The White House crypto report and the SEC’s cryptocurrency project announcement boosted investor confidence in the token.

The rumored August 15 deadline for resolving the Ripple versus SEC lawsuit supported XRP prices. This expectation of legal clarity helped distinguish XRP from other struggling altcoins during the market correction.

Traders continue monitoring regulatory developments and macroeconomic indicators that could influence cryptocurrency fund flows. The current volatility reflects broader uncertainty in both traditional and digital asset markets.