Crypto Market Rebounds as Hot Capital Sees Significant Surge in SOL and XRP

The cryptocurrency market experienced recent adjustments. As of April 28, 2025, short-term capital positioning in high-demand digital currencies (among them Solana and XRP) has shifted noticeably upward. For Solana (SOL), a recovery of sorts appears to be underway. After reaching a market capitalization low point on March 12, 2025, the digital currency once again has risen above the $9 billion threshold. As of April 28, 2025, SOL’s market cap was above $9 billion. In terms of hot capital, on April 28, 2025, SOL had above $9 billion worth of short-term capital. These are significant developments for a digital currency that had been hovering underneath those thresholds after reaching all-time highs in late 2021. XRP also had an impressive resurgence. From April 20 to April 28, the hottest capital of XRP soared from $0.92 billion to $2.17 billion, an impressive 134.9% increase. Despite this rebound, however, the hottest capital of XRP is still well below where it was in December 2024 when it peaked at $7.66 billion. The current surge, despite being quite notable, still represents a 72% decline from that all-time high. The increased hot capital for SOL and XRP is inline with a broader trend of recouping several asset classes in the market. Even with the recent bumps, however, the hot capital for BTC, ETH, SOL, and XRP remains miles away from their respective cycle highs. Why use hot capital as an indicator? By tracking changes in hot capital for Solana versus XRP, we can gain insights into which network and respective token is trending. As an added bonus, these two tokens trending in opposite directions should make for some interesting Twitter discourse. Hot Capital Rebounds Across Major Cryptos The influx of hot capital into SOL and XRP has not been confined to just those two assets; the entire cryptocurrency market seems to be recovering somewhat. But even with the strong rebound we’ve seen lately, the short-term capital setup for Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and XRP still lags behind the highs it set during this cycle. That’s a pretty good indication that these assets aren’t quite back to the types of momentum they were enjoying at the peak. Specifically: – Bitcoin (BTC) experienced a sharp decrease of $60.5 billion, which signifies a 60.8% drop in hot capital from its zenith. – Ethereum (ETH) trailed closely behind, with a deduction of $6.6 billion in hot capital, or 60.3%, from its former highs. – Solana (SOL) saw a drop of $5.9 billion, or 38.4%, from its cycle high. – XRP is far from its peak, even though it is making a recent recovery. It is currently down 71.7%, reflecting a 5.5 billion U.S. dollar loss in hot capital. $SOL Hot Capital reached $9.46B on 28 Apr – its highest since 12 Mar. Over the past 7 days, it increased by $4.72B (+100%). This is the largest 7-day increase in SOL hot capital since 23 Jan 2025, when it rose by $4.75B: https://t.co/ZJAVncqtbT pic.twitter.com/8P6itReDPl — glassnode (@glassnode) April 29, 2025 Despite these numbers indicating a recovery that is more resilient for SOL and XRP, we can see that the overall market has yet to make a full recovery to its previous highs. In fact, when we compare the current state of the market with the sharp downturns that have happened in the past, we can see just how far off the market currently is from its previous highpoints. Solana and XRP: Leaders in Recent Rebounds Investor sentiment in the crypto market is changing fast, as the recent price action in Solana (SOL) and XRP shows. These altcoins are suddenly working their way back into the good graces of traders and investors, but the reasons why are quite different for both. In Solana’s case, it’s all about the DeFi ecosystem, which is doing very well. In this Bull Case DeFi argument, we suggest Solana’s DeFi sector rebound is likely to continue (with potential monster yield opportunities) as crypto market conditions improve, setting Solana and other DeFi tokens up for what some believe is a guarantee of a sizable run. XRP has seen a massive inflow of hot capital, but relatively speaking, it is not that far off from where it was just a few months back. In reality, XRP has not been able to maintain or sustain the levels that it reached back in December, and recent activity from the price seems to reflect, once again, much of the market’s moved expectations. As much as much of the optimism has returned to the price of XRP, it seems much of the market is still awaiting fresh developments to move much further with confidence. And right now, it seems much of the XRP community is content just in being content. Market Outlook: A Slow but Steady Recovery? Although Solana and XRP are currently the leaders in short-term capital increases, the overall market picture appears to be one of recovery. The data suggest that the Bitcoin and Ethereum price recoveries may be filtering down to lower-tier cryptocurrencies. Another federal rate hike appears to be baked into the October 30-31 FOMC meeting, and the SEC appeals are not expected to yield any negative surprises until after the November 6 elections. In the meantime, risk-on cryptocurrency investors seem to have regained their appetites. The many roads to recovery for many investors remain in no way, shape, or form certain to lead to any kind of desired outcome. So it is with the emerging market for cryptocurrencies that are quasi- or not-at-all regulated. Watcher participants of all sorts are aghast at the sheer size of price drops. From the top of market capitalizations around June of 2021, BTC, and ETH are both apparently down by around 70% as of the end of 2022. In all that time taken from the present to the crypto market’s past June 2021 highs, there have been lots of new not-so-good-for-investors developments both inside and outside of the emerging market for crypto. The market will remain volatile in the near term, with a lack of fresh capital to key assets like BTC and ETH. That said, the recent healthy pops in SOL and XRP would suggest that the market has not completely lost its taste for new and innovative digital assets. Investors could be looking to diversify and capture value with some of these outside-of-the-top-two-crypto plays. Will Solana and XRP maintain their strong forward motion as we progress through 2025? Can the crypto space in general regain the confidence of large investors so that we see a return of hot capital-driven price performances similar to those of the past? Or is that too much to hope for in an asset class still so capriciously volatile? Disclosure: This is not trading or investment advice. 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