On-chain data shows the XRP network has seen a strong jump in 'Hot Capital' recently. Here's how this growth compares with Bitcoin and others.

In a new post on X, the on-chain analytics firm Glassnode has talked about how the Hot Capital of XRP has changed recently. The “Hot Capital”

On-chain data from Glassnode shows that the XRP network has seen a strong jump in ‘Hot Capital’ recently. The indicator, which measures the capital reserve of coins that entered during the past week, has registered an increase for the asset at a time when the cryptocurrency is also showing signs of a technical breakout.

In a new X post by the on-chain analytics firm, it's noted that the Hot Capital of XRP surged from $0.92 billion on April 20th to $2.17 billion on April 28th. This marks a $1.25 billion (+134.9%) increase for the indicator.

However, despite this rebound, the metric remains about 72% below its December 2024 peak of $7.66 billion.

Image Credit: Glassnode, Bankless

The capital reserve of any digital asset is measured through its ‘Realized Cap.’ This is a capitalization model that calculates the total valuation of a cryptocurrency by equating the value of each token in circulation to the spot price at which it was last transacted on the network.

Since the last transaction of any coin is likely to represent the last time it changed hands, the price at that time could be considered as its current cost basis. Thus, the Realized Cap essentially sums up the cost basis of all investors of the asset.

When this indicator's value changes, capital could be assumed to be moving in or out of the cryptocurrency, depending on the direction of the change. In the context of the current topic, the Realized Cap of the entire network isn't of interest, but only of a portion of it: the Hot Supply.

This refers to the coins that entered during the past week. Hot Capital is then calculated by applying the Realized Cap to the Hot Supply.

Earlier this year, the cryptocurrency markets saw a decline in short-term holder activity, which led to a decrease in Hot Capital for major cryptocurrencies like Bitcoin, Ethereum, and Solana.

However, in recent weeks, there has been a turnaround in this trend, with several cryptocurrencies, including XRP, showing an increase in capital entering within the past seven days.

This trend is particularly noteworthy for Bitcoin, as the indicator has undergone a 92% surge to $39.1 billion, according to Glassnode. This recovery marks one of the fastest upticks that the indicator has seen for the flagship cryptocurrency in recent months.

However, it's worth noting that the percentage increase witnessed by the metric is still lower than the one for XRP.

Ethereum and Solana are also similar in that, with ETH in particular notably lagging behind with only a 54% increase since April 17th.

While Hot Capital has grown across these cryptocurrencies, its value still remains far below the high observed earlier in the cycle, an indication that speculative activity hasn't quite made a full comeback yet. More specifically, the indicator is sitting at 60% down for both Bitcoin and Ethereum, and 72% for XRP.

The asset that is currently the closest to making a return is Solana, with the metric being around 38% following a weekly jump of 100%.