Morning Crypto Update: XRP Supply Decreases by 0.98%, Shiba Inu (SHIB) Sees a 3,000% Liquidation Imbalance, JP Morgan Introduces Money Market on Ethereum

As the new week unfolds in the crypto market, we see notable numbers and price movements. Approximately $1.18 billion worth of XRP is currently held within ETFs, which accounts for 0.98% of its total supply. Additionally, Shiba Inu (SHIB) experiences a liquidation imbalance of 3,000%, resulting in significant losses for long positions. Meanwhile, JP Morgan has launched a tokenized money market product on Ethereum’s Base network.

Key Takeaways

XRP Supply: $1.18 billion, or 0.98% of XRP's total supply, is now locked in ETFs.
SHIB Volatility: Shiba Inu faces a 3,000% liquidation imbalance, impacting long traders severely.
JP Morgan's Initiative: The bank introduces My OnChain Net Yield (MONY), a new tokenized money market fund on Ethereum.

Morning Crypto Update

Market Insights on XRP

Despite minimal price movement, interest in XRP’s ETF strategy is on the rise. Current data shows that net assets across U.S. XRP spot ETFs have reached $1.18 billion, reflecting 0.98% of XRP's total market cap. This means a significant portion of XRP is now secured in regulated investment vehicles, effectively taking it off the general market.

The price of XRP is currently hovering around $2, acting as a psychological benchmark for traders. While many are experiencing fluctuations in either direction, ETFs remain optimistic. This disconnect between a stagnant price and ongoing asset accumulation might indicate future price adjustments.

XRP Supply Data Source: SoSoValue

ETFs continue to buy XRP even amid market uncertainties. Typically, such discrepancies between price action and asset accumulation resolve themselves in the future. Although the price remains static, the underlying distribution is evolving.

The $2 mark is increasingly viewed as a critical point. Bulls consider it a solid foundation, while bears perceive it as evidence of market fatigue. With nearly 1% of the supply already secured, even a modest rise in demand could significantly impact prices.

Shiba Inu Experiences Unusual Liquidation Patterns

In contrast, the Shiba Inu derivatives market has seen chaotic trading conditions. Recent data from CoinGlass reveals a liquidation situation with about $122,000 associated with long liquidations compared to only $4,000 for shorts, creating a staggering 3,000% liquidation imbalance.

The trading behavior among SHIB investors indicates a tendency to gamble on upward price movements in a market devoid of follow-through results. Each minor decline leads to the liquidation of leveraged long positions, while bears remain largely inactive, keeping short exposure minimal.

SHIB Liquidation Chart Source: CoinGlass

This situation creates a feedback loop: bullish traders place long orders anticipating breakout moments, only to see prices move sideways, leading to liquidations and forcing bulls to re-enter the market.

The current trading status of SHIB can be described as a trendless "chop market," where price remains stagnant and patience is tested. Although this imbalance may suggest potential future risks, as the absence of short positions means that any unexpected upward price movement could result in rapid buying pressure. However, this does not guarantee a genuine price surge; instead, it reflects the ongoing rotation of traders.

JP Morgan's Blockchain Initiative

In a significant move, JP Morgan has launched its first tokenized money market fund on Ethereum, called My OnChain Net Yield (MONY), according to the Wall Street Journal. This development signifies the bank’s entry into on-chain asset management rather than merely focusing on payment solutions.

Initially, JP Morgan invested $100 million in MONY, which is now accessible to select investors with a minimum investment requirement of $1 million, making it mainly suited for institutional clients.

MONY operates fully on-chain and aims to yield comparable returns to traditional money market funds, utilizing blockchain for issuance and settlement. Investors can contribute using fiat or USDC, effectively bridging traditional cash management with crypto infrastructure.

JP Morgan's Tokenized Fund ETH/USD by TradingView

It is important to note that MONY is not a deposit token or stablecoin; it represents a legitimate investment fund leveraging Ethereum’s infrastructure to generate yield. By opting for Ethereum as the executing platform, JP Morgan has prioritized the network for institutional-grade tokenization.

Following this announcement, Ethereum's price increased by about 3%.

As we proceed, attention will shift toward how XRP reacts to ETF absorption against the $2 resistance, how SHIB behaves amidst liquidation pressures, and how Ethereum performs in response to JP Morgan's strategic moves.