Fresh inflows into XRP-linked funds, paired with a surge in new wallet creation, suggest traders may be rotating selectively into XRP while trimming exposure to larger cryptocurrencies.

XRP traded near $1.37 during midday Hong Kong hours on Thursday, according to CoinDesk data. In contrast, bitcoin hovered around $77,400, while ether remained under pressure, highlighting uneven momentum across major crypto assets.

CoinGlass data shows XRP-focused funds recorded $8.88 million in inflows in the latest session, extending a recent streak that included $18.52 million on May 14 and $10.87 million on May 15. Over the past week, total inflows into XRP products have reached roughly $42 million.

This stands in contrast to persistent outflows from larger crypto investment products. Bitcoin ETFs saw $100.9 million in redemptions in the latest session, following earlier withdrawals of $648.6 million, $331.1 million, and $290.4 million. Ether funds also remained weak, recording $32.6 million in outflows.

The divergence in flows points to a more selective rotation within the market, with XRP attracting relative demand while major assets continue to face selling pressure. However, XRP’s underlying network activity remains weaker compared with late 2025 levels.

On-chain data provides additional, though less definitive, context. Blockchain analytics firm Santiment reported XRP saw the fourth-largest single-day spike in wallet creation this year, with 4,300 new wallets added within 24 hours.

While spikes in wallet creation can signal fresh participation—especially when accompanied by inflows—the broader trend remains muted. Santiment data indicates XRP network growth has generally declined since late 2025, suggesting the latest increase may reflect short-term speculative activity rather than sustained adoption.

For traders, the key question is whether XRP is entering the early stages of a broader capital rotation or simply experiencing a temporary positioning shift amid ongoing weakness across the wider crypto market.