Amid rising tensions between Israel and Iran, investors are gravitating towards safer assets like Bitcoin and XRP. While altcoins lag, interest in XRP is growing, resulting in a significant increase in its market capitalization.
XRP: Resilience and Rising Interest
According to a recent Bybit report, interest in XRP has surged as legal pressures between Ripple and the SEC have eased. On the platform, XRP holdings more than doubled from November to May, with its price soaring by 338%, from $0.50 to $2.19. Additionally, market sentiment around a potential XRP spot ETF is optimistic, with an 85% chance of approval on Polymarket.
Bitcoin Remains Market Leader
Despite XRP's notable gains, Bitcoin remains the dominant asset in the cryptocurrency market. Bybit data shows that 30.95% of user assets are held in BTC. Bitcoin dominance has increased from 53.2% to 64% over the past year, while Ethereum's share has dropped from 18% to 9%. This reflects growing investor confidence in Bitcoin.
Institutions Choosing BTC and ETH
The report also highlights a divide between institutional and retail investor strategies. As of May 2025, retail traders held only 11.64% in BTC and 6.8% in ETH, nearly half of institutional investments. This suggests a cautious approach from larger players favoring regulated large caps.
As hopes for an altcoin rally fade, Bitcoin's dominance and growing interest in XRP confirm the current market status. The influx of capital into major assets is likely to continue as institutional investors remain focused on established cryptocurrencies.
