XRP, the cryptocurrency closely associated with Ripple Labs, is witnessing a notable spike in trading activity, according to new data from blockchain analytics platform Glassnode. 

The platform's latest figures reveal that XRP’s “hot capital” — short-term investment inflows — surged from $0.92 billion on April 20 to $2.17 billion by April 28. This marks a 134.9% increase in just over a week.

“Hot capital” refers to newly acquired crypto assets that are typically held for less than a week. These funds often represent speculative trades and fast-moving investments, serving as a barometer for short-term investor interest and trading activity.

Glassnode’s Realized Cap by Age chart shows this uptick clearly. The darker shaded areas on the chart — representing short-term holdings — have expanded significantly, indicating a renewed wave of activity from short-term traders and speculators.

Still below its highest levels

Despite this recent growth, XRP's hot capital remains significantly below its previous high. In December 2024, XRP hot capital reached $7.66 billion, nearly 72% higher than current levels. While the present $2.17 billion inflow points to increasing engagement, XRP has yet to reclaim the same degree of speculative momentum it enjoyed late last year.

Still, the current rise suggests that market sentiment is improving. Short-term investor interest is picking up again, fueled by broader crypto market movements and specific developments within the XRP ecosystem.Still, the current rise suggests that market sentiment is improving. 

Short-term investor interest is picking up again, fueled by broader crypto market movements and specific developments within the XRP ecosystem.

Regulatory delays and market sentiment

One factor influencing market attention on XRP is ongoing regulatory scrutiny. Earlier today, U.Today reported that the U.S. Securities and Exchange Commission (SEC) has delayed its decision on the XRP ETF application submitted by investment giant Franklin Templeton.

Despite this setback, community sentiment remains highly optimistic. According to CoinMarketCap’s sentiment tracker, 88% of community members currently hold a bullish outlook on XRP — a potentially encouraging sign for further upward momentum.