The XRP Dominance Excluding Stable Coins Chart

The current XRP Dominance is

The XRP Dominance Chart offers a visual representation of XRP's market capitalization compared to the overall altcoin market, with stable coins set aside. By doing this, the chart aims to provide an undistorted view of XRP's true standing in the altcoin space, giving investors and traders a more accurate gauge of its relative strength.

Stable coins, typically pegged to traditional currencies or commodities, bring stability to the market. However, their inclusion can sometimes overshadow the genuine dynamics between volatile coins like XRP and its peers.

Excluding them offers clearer insights and more actionable data for those interested in Ripple's flagship cryptocurrency.

XRP, developed by Ripple Labs, has etched a unique position in the crypto landscape, distinguishing itself from conventional proof-of-work cryptocurrencies like Bitcoin.

Its consensus mechanism and close affiliations with banking and financial institutions underscore its intent to streamline international transactions and reduce costs, making it a favored choice for real-world financial solutions.

However, with the vast array of altcoins vying for dominance, it's pivotal to grasp XRP's market position, especially when stable coins are taken out of the equation.

This perspective offers insights into XRP's market health, adoption rate, and its potential to influence broader cryptocurrency trends. It's not just about market cap; it's about the underlying value and real-world applications that drive its position.

XRP's foundational architecture stands out in the crypto domain due to its divergence from the traditional proof-of-work consensus. This innovative framework ensures quicker transactions and minimal fees, features that have piqued the interest of financial players globally.

Beyond its technical prowess, Ripple Labs' strategic alliances significantly bolster XRP's market position. Their commitment to forge partnerships with banks and financial entities ensures XRP's utility in streamlining international transfers via the RippleNet system.

Such distinguishing factors not only elevate XRP's stature among altcoins but also underscore its potential to usher in the next phase of crypto-financial integration, emphasizing real-world applicability over mere speculative value.

Efficient Transaction Protocol

Unlike many cryptocurrencies relying on energy-intensive proof-of-work mechanisms, XRP utilizes a consensus protocol. This design dramatically speeds up transaction times while reducing costs, providing a more efficient and eco-friendlier alternative for transfers.

Strategic Partnerships

XRP's prominence is further accentuated by Ripple Labs' partnerships with international banks and financial institutions. These collaborations leverage XRP for cross-border transactions within the RippleNet network, granting it tangible real-world utility and setting it apart from many speculative digital assets.

Regulatory Engagement

While the crypto world often shies away from regulation, Ripple Labs actively engages with regulators. This proactive stance aims to mold a compliant framework for XRP's operations, instilling more trust among institutional investors and potentially paving the way for broader adoption.

Focused Use-Case

XRP wasn't built to be just another cryptocurrency. Its primary purpose is to act as a bridge currency in payment settlements, especially for transactions involving different fiat currencies. This clear use-case stands in contrast to many cryptos with ambiguous purposes, fortifying its position in the market.

Technological Advancements

XRP's underlying technology supports scalability, with the capability to handle 1,500 transactions per second. This scalability, combined with consistent tech improvements, ensures that XRP remains at the forefront of digital payment solutions, adapting to growing demands.

There are some ways to incorporate the XRP dominance chart into trading analysis and as an indicator.

Let’s start with the basics. The XRP dominance chart goes up and down based on certain market conditions which we covered earlier. When the XRP dominance goes up, it illustrates to us that XRP is outperforming the rest of the cryptocurrencies, with maybe some exceptions. When the XRP dominance goes down, it means that the rest of the cryptocurrency market is outperforming XRP.

This is not synonymous with XRP appreciating in value. XRP can go up in value and go up in dominance. XRP can go up in value and go down in dominance. In this scenario, while XRP goes up in value, the majority of cryptocurrencies also go up in value, just at higher percentages. XRP can go down in value, and the XRP dominance can go up. XRP can also go down in value, and its dominance can also go down.

What happens in these two scenarios? If XRP goes down in value and XRP dominance goes up, it means that the rest of the cryptocurrency market is also going down just at higher rates. XRP is retaining its value better than the rest of the cryptocurrencies. If XRP goes down in value, and the XRP dominance goes down, it means that the rest of the market is crashing, and XRP is crashing in higher percentages. In other words, XRP is losing value faster than the rest of the market.

To make money or retain wealth with XRP, traders and speculators could use the XRP Dominance in 3 ways: To out compete the market during bull runs, and to exit at the opportune time. Or to accumulate XRP at the opportune time, understanding that there is a risk that the value of the XRP might drop.

It is also important to use the XRP dominance as an indicator in combination with other indicators such as the BTC:USD price chart, etc.

Support and Resistance Trading With the XRP Dominance Chart

The XRP Dominance chart respects support and resistance to some degree. Traders and speculators can use the support and resistance to calculate when it is the right moment to get out of their position.

For example, if the XRP dominance is facing significant resistance, and the goal is to accumulate more XRP, the speculator can do two things: sell their XRP for BTC or for stable coins, create a stop loss.

If it goes well and the XRP dominance goes back down, they enter their position again. Whether they make money in fiat or not is irrelevant to this strategy since the goal is to attain more XRP.

If the market is in the first phase of the bull market (it is in accumulation), then it might be a good idea to use the XRP dominance to accumulate more XRP by trading it with BTC. This is in the hopes that the XRP dominance goes way up at the peak of the bull market (which it has twice).

Let’s look at the chart to see some zones of support and resistance.

Understanding when it is a Bad Idea to Hold XRP with the XRP Dominance Chart

There are certain moments or points in time when it is terrible to hold XRP. To understand this, it is first important to understand that Bitcoin moves the market. It is important to accept the fact that Bitcoin is not going to go anywhere, XRP is not going to replace BTC anytime soon.

The fact of the matter is that XRP follows what Bitcoin does, if bitcoin goes up, XRP goes up. When bitcoin goes down, XRP goes down. During the absolute top of bull markets, the risk of holding XRP becomes greater because it means that the bear market is also near.

XRP underperforms BTC and Stable coins in bear markets to such large degrees, that holding XRP during a bear market is not a great idea. XRP will not retain its value well through bear markets, at least not as well as Bitcoin.

Let’s take a look at moments when it is important to get rid of XRP. In the previous bull run, XRP went up many times in terms of dominance.

Like the Bitcoin Dominance, the XRP Dominance also moves in cycles. Using these time frames, it is generally easy to predict where the XRP dominance is headed.

XRP Dominance moves in cycles because Bitcoin moves in cycles. Since XRP is influenced by Bitcoin, it mirrors what Bitcoin is doing to some degree.

In the image below, we can see how XRP dominance goes up towards the end of the bull market. The bull market went from 2016 to the start of 2018.

During every bull run, XRP dominance tends to go up and then it goes down completely for a span of about 2 years in the bear market. After which the cycle repeats. From 2019, to about 2021 XRP didn’t really move in terms of dominance. The same was from 2015 to 2017. We saw this generally happen in the last bear market from 2022 to perhaps 2024, with some small runs here and there.

Stable coins, pegged to traditional assets like the dollar or gold, inherently possess a stability that most volatile cryptocurrencies, including XRP, lack.

When assessing XRP's dominance in the crypto market, it's crucial to exclude stable coins to attain a clearer and undistorted representation. Including them can artificially skew the perception of XRP's real market influence, given the massive market capitalization and high liquidity stable coins tend to maintain.

Additionally, the primary utility of stable coins is to offer a refuge from volatility, facilitating easier trading and transition between cryptos. Their dominance reflects more on their function as a crypto 'safe-haven' rather than competitive strength or utility innovation. XRP, on the other hand, presents distinct technical and partnership-driven advantages in the crypto ecosystem.

By setting stable coins aside in dominance calculations, we ensure a more accurate portrayal of XRP's position, growth potential, and relevance. This refined perspective offers investors, traders, and crypto enthusiasts a more genuine understanding of where XRP stands in the ever-evolving crypto landscape.