XRP’s price is witnessing a decline today, following the broader trend in the crypto market. Currently, down by over 5.5% to $0.59, it continues its volatile trading pattern seen in recent days.

The current dip in XRP’s price reflects a retracement that commenced in March after reaching a peak of $0.74. Since then, it has decreased by approximately 18.5%, with several factors contributing to its decline.

U.S. Manufacturing Data Impact on XRP Price

The downward movement in XRP’s price aligns with similar drops across the cryptocurrency market. Investors are reassessing their expectations regarding the Federal Reserve’s interest rate cuts following robust U.S. manufacturing data.

The Institute for Supply Management’s manufacturing index rose by 2.5 points to 50.3 last month, signaling a halt to a 16-month decline in manufacturing activity. This data suggests that the Fed may opt for two rate cuts this year instead of the previously anticipated three.

Reduced Interest in XRP and Whale Activity

Lower interest rates typically favor cryptocurrencies like XRP, which do not offer interest. However, recent trends indicate a decline in the number of significant XRP holders, often referred to as “whales.” Conversely, the number of addresses holding smaller amounts of XRP is increasing.

Market Outflows and XRP Dominance

XRP has underperformed compared to its major competitors in 2024, with a year-to-date performance of approximately -4.5%. The XRP Dominance Index has dropped by 36.55% during the same period, indicating a capital outflow from XRP to other cryptocurrencies.

This outflow is partly attributed to ongoing legal issues, including the SEC’s lawsuit against Ripple. Last week, Ripple’s chief legal officer revealed that the SEC is seeking a $2 billion penalty against the company.

Technical Analysis and Future Outlook

Technically, XRP’s current price decline is part of its fluctuation within an ascending triangle pattern. The cryptocurrency’s next downside target is projected around the triangle’s lower trendline, which intersects with its 200-week exponential moving average near $0.52 by mid-April. Conversely, a breakout above the triangle’s upper trendline could propel XRP’s price to $0.74, its local peak from March 11.

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Chainage, a decentralized finance (DeFi) hub with approximately $100 million in total value locked, is pursuing a $13 million capital raise for protocol expansion, subject to approval from its tokenholders within its native decentralized autonomous organization (DAO).

In a snapshot proposal dated April 1, Chainage outlined plans for the $13 million raise, led by an undisclosed venture capital firm. This raise would involve the issuance of 50 million additional XCHNG protocol tokens, constituting roughly 10% of Chainage’s circulating supply. The issuance price of $0.26 aligns closely with XCHNG’s token price at the time of publication.

Tokenholders can participate in the proposal by staking their native XCHNG tokens to receive “vXCHNG,” granting them voting rights. Chainage aims to implement various strategies to enhance usage and profitability, committing to generating a minimum of $1 million in profit for Q2, with 80% of profits allocated to vXCHNG holders through a profit-sharing mechanism.

The primary objectives of the $13 million raise include global expansion, increased visibility, and the recruitment of top-tier talent to integrate AI with cutting-edge technology, positioning Chainage as a leader in AI-powered crypto innovation. The capital would also be utilized to incentivize liquidity, establish new partnerships, undertake marketing initiatives, and reward tokenholders.

As of the time of publication, the proposal has garnered 186 million XCHNG votes in favor and 7.2 million XCHNG votes against, with a circulating XCHNG balance of 474 million.

This move represents a departure from traditional venture capital fundraising methods, with Chainage opting for tokenholder approval within its DAO. This approach aligns with the growing trend among Web3 startups to leverage decentralized governance structures, particularly as the crypto industry experiences a surge in investment amid a bullish market.

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Telegram has rolled out a new feature allowing users to purchase channel advertisements using Toncoin, as announced over the weekend. This update is part of the messaging app’s latest initiative for user monetization, wherein 50% of the revenue generated from ads displayed in public Telegram channels will be distributed to their respective owners.

According to Telegram, users can now promote their channels by spending as little as “a handful” of Toncoins. Users will have the flexibility to select the specific channels for placing their TON-powered ads, as mentioned in the announcement.

Moreover, channel owners will have the capability to withdraw their earnings without incurring fees. The withdrawal service is expected to be available in the coming weeks on Telegram’s Fragment exchange, according to the announcement.

Telegram justified its choice of the TON Blockchain due to its low fees, high transaction speeds, and impressive processing capacity. The TON Blockchain reportedly achieved a remarkable 100,000 transactions per second during a test conducted last November.

Pavel Durov, CEO of Telegram, hinted at this update on his channel last month. Despite Telegram channels amassing over 1 trillion monthly views, Durov revealed that only 10% of channels have utilized Telegram ads for monetization thus far.

Durov emphasized the potential for a positive feedback loop, wherein content creators can either cash out their Toncoins or reinvest them in promoting and enhancing their channels.

As of the time of publication, the price of Toncoin has risen by 2.32% in the past 24 hours, reaching $5.24.

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According to a note from TD Cowen, House Republicans’ efforts to pass an anti-central bank digital currency (CBDC) bill could disrupt bipartisan backing for a stablecoin bill. The CBDC Anti-Surveillance State Act, introduced by House Majority Whip Tom Emmer, aims to prevent the Federal Reserve from directly issuing a CBDC to individuals. Despite the bill’s advancement from the House Financial Services Committee in September, it faced significant criticism from Democrats.

House conservatives are reportedly considering voting for the CBDC bill alongside a long-awaited stablecoin bill, although this strategy isn’t led by Rep. Emmer. TD Cowen’s Washington Research Group, led by Jaret Seiberg, expressed concerns that tying a ban on a digital dollar to stablecoin legislation could jeopardize bipartisan support. Democrats generally see value in exploring a central bank cryptocurrency.

Maxine Waters, the top Democrat on the House Financial Services Committee, and its chair, Patrick McHenry, have engaged in lengthy discussions to find common ground on regulating stablecoins. Although the bill cleared the committee, disagreements persist, particularly regarding the primary regulator for stablecoin issuers.

TD Cowen emphasized that while it’s premature to declare the stablecoin bill in jeopardy, passing any legislation remains challenging. Any developments complicating the stablecoin bill further narrow the path to enactment.

While the central bank has explored the idea of issuing a CBDC, Fed Chair Powell clarified that the Fed is far from making recommendations or adopting a CBDC without congressional approval.

Additionally, the Heritage Foundation has pressed for the passage of a CBDC bill, warning lawmakers that their score on the Heritage Action Scorecard could suffer if they don’t cosponsor the legislation. Sen. Ted Cruz has introduced a bill to ban CBDCs, supported by the Heritage Foundation and the Blockchain Association, among others.

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After experiencing record outflows of nearly $1 billion just a week prior, crypto-based investment products made a significant turnaround, with approximately $900 million in net inflows reported, according to data from CoinShares.

CoinShares analyst James Butterfill disclosed that crypto-based investment vehicles collectively saw a remarkable rebound last week, accumulating $862 million in net inflows. This resurgence follows a challenging period when funds managed by prominent asset managers like BlackRock, Fidelity, and Grayscale witnessed record outflows totaling $942 million.

Driven by bitcoin’s price surging above $70,000 for a significant portion of last week, the combined assets under management for all crypto funds tracked by CoinShares soared to $97.9 billion.

Bitcoin-Related Funds Remain Dominant

Bitcoin-related funds continue to attract the bulk of investor activity. Both BlackRock and Fidelity’s spot bitcoin ETFs recorded inflows exceeding $600 million each during the past week. However, Grayscale’s spot bitcoin ETF experienced outflows amounting to $960 million, reducing its assets under management to approximately $35 billion.

An Exceptional Performance by Ark Invest 21 Shares

One standout performer last week was the Ark Invest 21 Shares spot bitcoin fund, which witnessed over $300 million in net inflows. This marks a substantial increase compared to the previous week when the fund attracted only $30 million in capital inflow. With its assets under management now exceeding $3 billion, the fund demonstrated exceptional growth.

Overall, the rebound in net inflows suggests renewed investor confidence in crypto-based investment products, particularly amidst the backdrop of Bitcoin’s impressive price performance.

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