Ethereum News Today: XRP's 19% Drop Seen as Healthy Correction Amid Broader Crypto Volatility; Ether Gains on Institutional Adoption Surge

The XRP price decline of 19% in late July has been characterized by analysts as a “healthy correction,” aligning with broader market volatility that saw the crypto sector’s total market cap dip to $3.79 trillion. Despite the sharp drop—pulling XRP to an intraday low of $2.95 from a multiyear high of $3.66—experts remain optimistic about long-term prospects. Over-leveraged long positions and cascading liquidations exacerbated the decline, but the correction is viewed as a necessary rebalancing in a market still navigating post-ETF uncertainty. Meanwhile, Ether faces a different dynamic as institutional demand surges, with Bitcoin mining firm BitMine Immersion Technologies acquiring over $2.03 billion worth of ETH in 16 days. The firm, led by FundStrat’s Tom Lee, aims to stake 5% of the total ETH supply, signaling growing confidence in Ethereum’s staking potential and network security. This aggressive buying spree has triggered concerns about a supply shock, with Galaxy Digital’s Michael Novogratz predicting Ether could outperform Bitcoin in the next six months, potentially reaching $4,000. The interplay between XRP’s correction and Ether’s institutional adoption highlights diverging trajectories in the crypto market, with risk assets like altcoins also seeing mixed performance.

BitMine’s rapid accumulation of 566,776 ETH underscores a broader trend of corporate treasuries prioritizing crypto assets. Lee emphasized that such strategic purchases are part of a long-term play to stabilize Ethereum’s supply through staking, a move that could reduce circulating ETH and theoretically support price appreciation. This aligns with Novogratz’s forecast that limited ETH supply could make it more attractive to institutions than Bitcoin, particularly as Ethereum’s post-merge energy efficiency gains traction. Conversely, XRP’s volatility reflects challenges in maintaining investor sentiment amid regulatory scrutiny and thin liquidity in certain trading pairs. Analysts note that while short-term corrections are par for the course in crypto, the market remains sensitive to macroeconomic signals, including global M2 liquidity trends. Eric Trump’s assertion that Ether “should be over $8K” as M2 hits record highs adds to the narrative that liquidity expansion could fuel risk-on sentiment, though such predictions remain speculative.

The week’s market outcomes underscore the fragility of leveraged positions in crypto. Bitcoin dipped below $116,000, triggering $585.86 million in long liquidations, with Ether similarly losing $104.76 million in open positions. These figures highlight the sector’s exposure to sudden macro shifts, even as some altcoins, like Conflux (CFX) and Ethena (ENA), outperformed with gains exceeding 40%. The contrast between XRP’s correction and Ether’s institutional embrace illustrates the evolving landscape of crypto demand, where staking-friendly assets and regulatory clarity play increasingly critical roles. As market participants navigate these dynamics, the focus remains on balancing short-term corrections with long-term structural trends in adoption and supply management.

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Source: [1] XRP dip was a ‘healthy correction,’ Ether supply shock: Hodler’s Digest, July 20 – 26 [https://coinmarketcap.com/community/articles/6885661fad297b3c55d57413/] [2] BitMine gobbles over $2B in ETH in 16 days amid treasury arms race [https://coinmarketcap.com/community/articles/6885661fad297b3c55d57413/] [3] Ether will ‘knock on $4,000’ and soon outperform Bitcoin: Novogratz [https://coinmarketcap.com/community/articles/6885661fad297b3c55d57413/] [4] Top Prediction of The Week Eric Trump ‘agrees’ Ether should be over $8K as Global M2 money soars [https://coinmarketcap.com/community/articles/6885661fad297b3c55d57413/] [5] Bitcoin tumbles below $116K in bloodbath for crypto longs [https://coinmarketcap.com/community/articles/6885661fad297b3c55d57413/] [6] XRP price drops 19% but analysts say it’s a ‘healthy correction’ [https://coinmarketcap.com/community/articles/6885661fad297b3c55d57413/]