Did XRP Market Cap Surge 647x from Just $17M in Netflow? Here’s What We Know

As XRP recovers from last week’s dip, analysts are examining the significance of the small inflow that pushed XRP’s price back up.

Notably, XRP dropped to $2.0647 last week, marking a 9.4% dip from the $2.281 it traded at earlier in the week. The dip coincided with the feud between billionaire Elon Musk and U.S. President Donald Trump, which led to a massive decline in Tesla’s stock. The controversy spilled into the crypto space due to both individuals’ associations with cryptocurrencies.

Meanwhile, at press time, XRP is trading at $2.23, having fully recovered from last week’s dip. Now, market watchers within the XRP community are tracking the inflows that preceded this rebound.

XRP Records $18.6M Netflow, Price Jumps

Community figure Chad Steingraber highlighted the inflow metric in a tweet. He noted that XRP bounced from $2.08 to $2.17 on June 6 following a net inflow of just $18.6 million. Notably, this move added $10 billion to its full market cap. The inflow-to-market cap multiplier is approximately 538x, meaning every $1 of net inflow increased XRP’s market cap by about $538.

Commenting on this, XRP influencer Zach Rector stated that the figures show it takes very little inflow to push XRP’s price significantly higher. He added that market participants might regret not buying XRP at $2 if price surges become consistent due to further inflows.

647x Growth Multiplier

However, in a follow-up post on June 8, Steingraber pointed out that XRP soared from $2.17 to $2.28 on just $17 million in net inflows. This translates to an $11 billion increase in XRP’s market cap, based on the full 100 billion supply, on June 7.

Here, the multiplier is approximately 647x, meaning every $1 of net inflow increased XRP’s market cap by about $647 during that move.

However, XRP ended the same day with a negative netflow of $5.88 million, indicating an outflow. As a result, the price retraced, closing at $2.17. The following day, XRP saw a small net inflow of $41,500, and the price closed at $2.267. As of press time, net inflow into XRP is negative $5.45 million, with the price at $2.23.

Based on this multiplier metric, community member Tomasz Wilkosz argued that XRP could potentially reach $8.64 if it were to see a $1 billion investment.

Eyes on ETFs to Drive Prices

It’s worth noting that in recent months, larger negative flows have dominated XRP’s market. This could help explain XRP’s relatively flat price performance over the past six months.

In contrast, December and January saw record-high inflows that corresponded closely with price increases. For example, on January 15, 2025, XRP recorded a $207 million positive netflow, and the price climbed above $3.20 at the time.

These metrics highlight how inflows can directly impact XRP’s price, but sustained inflows have been challenging. As a result, all eyes are on XRP spot ETFs, which would require issuers to purchase and hold XRP as underlying assets.

As seen with Bitcoin ETFs, such products experience daily positive or negative flows. Using similar multiplier effects, some speculate that even $4 billion in ETF-related inflows could push XRP to $2

Clarification

While the netflow figures referenced in this report have sparked significant interest, it’s important to note that they primarily reflect deposits and withdrawals from exchanges. They do not reflect actual capital entering or exiting the XRP market.

True market inflows would require analyzing buy-side volume on exchange order books. As highlighted in a prior report, even a $500 million withdrawal from Kraken in May had no price impact. In other words, exchange outflows alone don’t confirm buying activity.