- Stellar, Ripple, and Solana-based funds experienced significant assets under management (AUM) surge in July.
- Ripple’s partial legal victory against the SEC served as a catalyst, causing ripple effects in the crypto market, particularly enhancing XRP, XLM, and SOL’s market sentiments.
A remarkable wave of growth swept over the cryptocurrency investment landscape in July 2023, most noticeably impacting funds tied to Stellar (XLM), Ripple (XRP), and Solana (SOL). According to an analysis by CCData, these funds experienced a dramatic increase in assets under management (AUM) during the month.
A Ripple Effect Propelling Market Growth
This market acceleration appeared to gain momentum on July 14, a day following a critical ruling by a U.S. judge that the sale of Ripple’s XRP tokens on exchanges did not constitute investment contracts. This partial legal triumph for Ripple had profound ramifications across the digital asset sector, catalyzing sharp price ascents for various altcoins, including Stellar and Solana.
Funds anchored to Stellar’s XLM experienced a robust AUM growth of 62.7%, reaching $17.3 million. The Grayscale Stellar Lumens Trust, a key player among these funds, reported a surge in premium to net asset value of up to 330%, as per CCData. Ripple’s XRP and Solana’s SOL-linked products also enjoyed the ripple effect with their AUMs increasing by 33.2% to $65.7 million, and 55.7% to $87.8 million, respectively.
The industry’s sentiment towards XLM, in particular, has been markedly positive over the past month.
“The advancement of its partnership with USDC’s Circle and strategic collaborations with entities such as MoneyGram has significantly bolstered market sentiment,”
commented Hosam Mahmoud, a research analyst at CCData.
As the global digital asset landscape continues to evolve rapidly, these noteworthy market movements offer valuable insight. The significant surge in AUM across Stellar, Ripple, and Solana-based funds, catalyzed by Ripple’s partial court victory, underscores the interconnected nature of the crypto market and the potential for significant shifts in investor sentiment and market dynamics. As we move forward, observing these trends and their catalysts will be key to understanding the forces shaping the future of digital asset investments.