Ripple: XRP Whales Buy, Network Activity Decreases

Ripple (XRP) has been under the scrutiny of critical investors for years, who have their eyes on so-called Whales (large investors). The fear: Whales could play “pump and dump” with their huge holdings in XRP, i.e. influence the price curve in their favor. An inventory of the analysts of Santiment actually shows trends that prove that Whales are not to be underestimated in XRP.

That’s because 26.8 percent of all XRP in circulation (the equivalent of nearly 8 billion U.S. dollars) is now controlled by wallets holding between 100,000 and 100 million coins, Santiment’s definition of whales. What Santiment doesn’t mention is that Ripple’s rich list still knows more than 50 wallets with holdings between 100 million and nearly 2 billion XRP, but that includes holdings stored at crypto exchanges. So in reality, the market power of XRP Whales is even greater than Santiment quantifies. For estimation, 100,000 XRP are currently worth around $50,000.

A second trend is also striking. The number of transactions moving more than $100,000 in XRP recently fell below 4.00 on a weekly basis, the lowest level since August 2022. So on the one hand, XRP Whales have thoroughly increased their holdings over the past 12 months. On the other hand, they are mostly shifting to HODL strategy, at least for now, and seem to be waiting for times when the price curve is pointing up again.

In this mix, many in the XRP community remember a recent comment by Ripple chief technology officer David Schwartz. The latter revealed on X (formerly Twitter) that his father had bought a good million XRP in 2014 for around 0.005 per coin. Father Schwartz has since passed away and son David does not say if the XRP was ever sold. If HODL applied here as well, around 10,000 percent profit would be realizable at current price levels of XRP at around $0.50.

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Conclusion: XRP investors should not ignore Whales in analysis

On average, daily trading in XRP on global crypto exchanges records more than $500 million in turnover, and $1 billion on peak days. Whales have this data in mind, so they know that concerted selling could quickly send prices plummeting. Instead, they seem to be following the old adage that the art of smart investing, and not just with Ripple, is patient waiting. Private retail investors can also take their cue from this, as XRP traded well above $1 in the last boom market in 2021.

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(Featured image by vjkombajn via Pixabay)

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