XRP News Today: Crypto Market Retreats 10% Amid Trade Tensions and Macro Uncertainty

Solana, Dogecoin, and XRP experienced significant declines over the past week, with Solana falling over 10% to $156, Dogecoin dropping 14%, and XRP decreasing by 5%. This broader retreat in digital assets is attributed to renewed macroeconomic uncertainty and escalating global trade tensions. The muted activity in decentralized finance (DeFi) platforms, low volume in perpetual futures contracts, and shifting risk appetite indicate a weakening of retail-driven momentum in the crypto market.

According to Strahinja Savic, head of data analytics at a crypto advisory firm, the current sentiment in the crypto market is risk-off, driven by macroeconomic instability that spills over into the digital asset space. This instability has led to sharp sell-offs and a reset of risk appetite among investors. Savic noted that the sluggish lending rates on DeFi platforms and low volume for perpetual futures contracts for Bitcoin and Ethereum underscore the lack of appetite for risky, retail-driven trading in the current environment.

The declines in Solana, Dogecoin, and XRP come amid a broader pullback in digital assets, which has been influenced by renewed investor caution. This caution is primarily driven by trade tensions and macroeconomic uncertainty. The re-escalation of the trade war by the U.S. administration has raised concerns about slowing economic growth and rising prices, which have consistently buffeted markets.

Solana's price rose above $180 in mid-May, part of an upswing in digital assets that occurred when inflation readings arrived milder than expected and trade rhetoric softened. Dogecoin and XRP also spiked around this time before sinking. Despite the recent declines, there is still significant support for crypto in general, with Bitcoin's dominance rising to about 65% and being up more than 10% year-to-date. This indicates that while there is short-term volatility, the overall sentiment towards digital assets remains positive.