XRP Whales Increase, Sparking Concerns on Scarcity
XRP boasts a total circulating supply of 100 billion tokens, a substantial amount at first glance. Nonetheless, the cryptocurrency has managed to establish scarcity in the market. The scarcity became evident when Chad Steingraber shed light on the fact that the actual available supply is much less than commonly believed.
- Ripple’s control over the majority of XRP through an escrow system contributes to this scarcity. The system releases only a small portion monthly, with around 40 billion XRP tokens currently locked in escrow.
- This controlled supply model effectively limits the circulating supply, propelling significant buying pressure as demand outstrips the limited XRP available on exchanges.
Rise in XRP Whales Consolidates Control
Aside from the 39 billion XRP in escrow, retail traders’ access to XRP has been challenged by accumulating whales. Out of the 55.6 billion XRP in circulation, the top 10 XRP addresses hold approximately 11.2 billion XRP. Additionally, the top 50 addresses control nearly half of the current supply, amounting to 26.9 billion XRP.
- Comparatively, the top 103 Bitcoin addresses possess less than 16% of the total circulating supply of Bitcoin, emphasizing the concentration of XRP among fewer holders.
- This imbalance sets the stage for XRP whales to maintain dominance over the circulating supply and potentially drive prices higher in the absence of significant selling.
Implications for XRP Holders
The culmination of XRP in the hands of fewer holders could lead to substantial price surges if whales opt to hold rather than sell. While the increased scarcity may pose challenges for new retail traders looking to acquire XRP, it also reflects a strong belief in XRP’s future price movements. As Steingraber highlighted, retail trading dictates the price, indicating that heightened demand from retail traders will inevitably result in price increases.
- Currently, XRP trades at $0.4759, experiencing a 6.28% decline over the past week, which has seemingly stabilized in the last 24 hours.
- Positive price action is apparent near $0.4620, hinting at an intriguing price trajectory for July, historically favorable for XRP.
XRP Price Action Predictions for July
In July 2023, XRP surged by 47.6% following an 8.15% drop in June, mirroring the current 8.18% decline in June 2024. If historical trends repeat, XRP could potentially reach around $0.70 by the end of July, reflecting a notable price increase.
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