XRP ETFs Experience First Weekly Outflow in 13 Weeks Amid Declining On-Chain Activity

U.S. spot XRP exchange-traded funds (ETFs) have recorded their first weekly outflow in 13 weeks, signaling a potential shift in investor sentiment. According to data from SoSoValue, the week ending October 16 saw a net withdrawal of approximately $1.84 million from XRP ETFs, marking a notable reversal from the previous week’s inflow of $11.31 million.

This outflow comes amidst a significant drop in on-chain payment activity, with XRP Ledger payment volume plummeting to 119.5 million XRP on October 17, a staggering 72.3% decrease from the previous day and well below the 30-day average of 629.3 million XRP. Such volatility in payment volume raises concerns about the underlying demand for XRP.

Despite the recent outflow, cumulative net inflows for XRP ETFs remain substantial, totaling around $1.8 billion as of mid-October. However, analysts caution that if both ETF flows and on-chain activity continue to decline, the short-term outlook for XRP could weaken. The market will be closely monitoring whether payment activity rebounds in the coming days, as a single day of low activity does not necessarily indicate a long-term trend.

As of now, XRP is trading near $1.28, reflecting a 1.60% decrease over the last 24 hours. The recent developments suggest a cooling demand for XRP, both at the institutional level and within the network.