Whale Activity on the XRP Ledger Remains Subdued in 2023
This year, there has been a decrease in whale activity on the XRP Ledger compared to previous years. However, key addresses belonging to sharks and whales continue to accumulate the network’s native token, $XRP.
According to on-chain analytics firm Santiment, wallets holding between 100,000 and 100 million XRP now possess $7.89 billion worth of the token. This is an increase from around $7.16 billion a year ago, representing approximately 26.8% of the cryptocurrency’s supply.
Santiment’s report also highlights that the XRP Ledger currently averages under 4,000 transactions worth over $100,000 per week, which is below its usual levels. The reduced whale activity may raise concerns among some market observers, suggesting a decline in overall interest or a shift towards other emerging digital assets.
Despite the slowdown in whale activity, the ongoing accumulation by key addresses may indicate a long-term perspective rather than short-term trading focus. It aligns with the investment principle that “the big money is not in the buying and selling, but in the waiting.”
In recent news, Ripple’s CTO David Schwartz revealed that his late father purchased “over a million XRP” in April 2014 for just $0.005 per token. This sparked discussions about potential returns from such an early investment in the cryptocurrency.
Early Investment Pays Off for XRP
It’s important to note that this investment was made when XRP was trading near its historical lows. Market data from that period confirms that the cryptocurrency was priced at $0.061 in December 2013 before experiencing a correction that brought it down to that level.
Currently, XRP is valued at $0.521, meaning that the estimated $5,000 investment for 1 million tokens at $0.005 each would now be worth around $520,000.
During the cryptocurrency’s all-time high, the tokens were worth over $3.3 million, resulting in returns of over 65,000%. At the time of writing, assuming Schwartz still holds the tokens, the returns are over 10,300%.
However, it’s important to remember that past performance does not guarantee future results. Investors should conduct their own research and due diligence before making any financial decisions. While historical data can provide insights and trends, it cannot predict or guarantee future performance in any market or asset.
Hot Take: Whale Activity Decline Indicates Shifting Interest
The decrease in whale activity on the XRP Ledger raises questions about shifting interest in the cryptocurrency market. While key addresses continue to accumulate XRP tokens, there has been a decline in overall transactions worth over $100,000 per week.
This could be an indication of investors diversifying their portfolios and exploring other emerging digital assets. It also highlights the importance of taking a long-term perspective when investing in cryptocurrencies like XRP.
However, it’s crucial to approach investments with caution and conduct thorough research. Past performance may provide some insights, but it should not be solely relied upon when making financial decisions. The cryptocurrency market is highly volatile and unpredictable.
By
By
By
By