Large XRP Holders Acquire 67.2% of Total Supply During Decrease in Price

Large XRP Token Holders Accumulating Tokens

You see, large XRP token holders have been accumulating the native token of XRP Ledger to the point they now control 67.2% of the cryptocurrency’s circulating supply, the largest amount since December 31, 2022.

Risk of XRP Falling Below $0.50 Mark

Now, according to on-chain analytics firm Santiment, the price of XRP is at risk of falling below the $0.50 mark for the first time since October, as whale transactions worth over $1 million spiked to 217 in a single day.

Ruling in the SEC vs Ripple Labs Lawsuit

In the wake of a complex ruling in the SEC vs Ripple Labs lawsuit by Judge Analisa Torres of the United States District Court for the Southern District of New York, who accused the fintech firm and two of its executives – Chris Larsen and Brad Garlinghouse – of unlawfully offering and selling unregistered securities, XRP, Santiment notes the highest number of whale transactions above the $1 million mark in a single day.

Analysis of the Ruling

Judge Torres elaborated that Larsen’s and Garlinghouse’s XRP sales were programmatic and executed through blind bid/ask transactions on digital asset exchanges, and she stated that these transactions did not fulfill the criteria to be considered investment contracts under the Howey Test. Additionally, she clarified that XRP, as a digital token, did not inherently meet the Howey requirements for an investment contract and noted that secondary market sales of XRP could not be classified as investment contracts since the funds did not trace back to Ripple.

XRP Trading at the Time of Writing

According to Santiment, there are some “key signals” indicating that XRP “is one of the better candidates for a bounce.” XRP is at the time of writing trading at $0.506 after losing around 1% of its value over the past week.

Hot Take: Current State of XRP Tokens and the Risks

XRP whaleholders are accumulating a significant percentage of the cryptocurrency, the whales may be driving down the cryptocurrency’s price, which coupled with legal uncertainty may cause significant losses for XRP investors despite the potential “bounce.”