Keep an eye on XRP, Plasma, DOGE as bitcoin drifts

As bitcoin BTC$74,317.30 continues to trade sluggishly near $75,000, several other crypto projects are showing notable developments.

Among them is XRP (XRP), the payments-focused token used by fintech firm Ripple to facilitate cross-border transactions. U.S.-listed spot XRP ETFs drew more than $17 million in inflows on Wednesday, the most since Feb. 2, according to data source SoSoValue. While that is smaller than the flows seen in bitcoin ETFs, it nonetheless points to a revival in demand for XRP after a prolonged period of muted activity marked by little to no uptake.

News flow has been encouraging, too. Ripple has partnered with Kyobo Life Insurance to pilot South Korea's first real-time tokenized government bond settlement system on blockchain.

In addition, XRP's derivatives market is flashing bullish signals with open interest (OI) rising alongside positive funding rates and cumulative volume delta. The OI has jumped to 1.89 billion XRP, a level last seen in late March, per Coinglass data.

The other noteworthy development is stablecoin-focused layer-1 blockchain Plasma, which has emerged as the world's seventh-largest blockchain by total value locked (TVL), a measure of the dollar value of assets on the network.

At the time of writing, TVL stood at $2 billion, up 27% over the past week and more than 80% over the past 30 days, according to DeFiLlama. The driver behind the growth is not clear, but could be linked to rising optimism around the CLARITY Act nearing approval in the U.S., as noted by JPMorgan.

The act is a proposed U.S. bill that seeks to clarify how digital assets, including stablecoins, are regulated and which agencies oversee them.

In addition, Plasma is among a select group of networks, alongside Ethereum and Arbitrum, chosen to support Tether's new self-custody wallet, Tether Wallet, announced earlier this week.

Lastly, there is DOGE$0.09598, the meme-inspired token. Bollinger Bands, volatility indicators plotted two standard deviations above and below the token's price, are currently at their tightest since February 2024, typically signaling a period of low volatility that is likely to end with significant price swings.