Stellar, Ripple, and Solana-Based Investment Funds Experience Surge in AUM during July – Will XLM, XRP and SOL Prices Continue to Lead?

• Post Ripple’s XRP court ruling, investment funds offering altcoins garnered a lot of attention in the last ten days of July.
• Grayscale’s Stellar Lumens Trust (XLM) saw its premium to net asset value surge to 330%. XRP and SOL-based investment products saw their AUM jumping by 30% and 50% respectively.

The altcoin space clearly dominated the broader cryptocurrency market during the month of July 2023 as Bitcoin continued to struggle around $30,000. Also, altcoin investment funds, particularly for Stellar (XLM), Ripple (XRP), and Solana (SOL) saw massive inflows this month.

In July, investment funds connected to Stellar’s XLM, Ripple’s XRP, and Solana’s SOL experienced a significant increase in assets under management (AUM), as reported by CCData. The majority of this growth occurred on July 14, just after a U.S. judge ruled that the sale of XRP tokens on exchanges did not qualify as investment contracts.

Soon after the court ruling that Ripple’s XRP is not a ‘security’, investors gained confidence in the altcoins. Some of the biggest crypto trading platforms like Coinbase, Huobi, Bybit, and others also re-listed the XRP token leading to massive trading volumes for the cryptocurrency.

Besides, the SEC had also named cryptocurrencies like Stellar (XLM) and Solana (SOL) as securities in its lawsuit filing against Coinbase in early June. However, with the court ruling coming in Ripple’s favor, market analysts are confident that other altcoins won’t be subject to securities laws.

Ever since the Ripple court ruling, Stellar Lumens (XLM) price has gained more than 50% while the Solana (SOL) price is up by over 20% in the last 12 days.

Stellar XLM-Based Products on the Radar

According to CCData, assets under management (AUM) for investment products linked to XLM (Stellar) rose by 62.7% to $17.3 million. This includes Grayscale’s Stellar Lumens Trust (XLM), which saw its premium to net asset value surge to 330%.

For XRP-based products, AUM increased by 33.2% to $65.7 million in July, while SOL-based products experienced a 55.7% AUM increase, reaching $87.8 million during the same period, as stated in the report. In a note to CoinDesk, Hosam Mahmoud, research analyst at CCData wrote:

“Sentiment surrounding XLM has been positive over the past month, bolstered by the advancement of its partnership with USDC’s Circle and strategic collaborations with entities such as MoneyGram”.

Crypto Market Up After Fed Rate Hike

On Wednesday, July 26, the broader crypto market made an upswing after the US Federal Reserve announced a 25 basis points rate hike. Soon after the Bitcoin price surged all the way to $30,000, however, faced some retracement later.

As of press time, the BTC price is trading 0.75% up at a price of $29,445 and a market cap of $572 billion. Soon after the Fed rate hike, the discussions around Bitcoin picked up grabbing away the limelight from altcoins. On-chain data provider Santiment reported:

The ratio of discussions related to #Bitcoin vs. other top 100 assets has surged following the #FOMC hiking rates, and $BTC teasing $30k once again. Generally, this high social dominance is a sign of fear, increasing the likelihood of a price rise.

Courtesy: Santiment

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