Declining Whale Activity on XRP Ledger
Crypto market intelligence platform Santiment has observed a decrease in whale activity on the XRP Ledger (XRPL) in 2023 compared to previous years. The XRPL is a decentralized public blockchain that facilitates fast, low-cost transfers of XRP, fiat currencies, and digital assets.
Santiment reports that despite the decline in overall activity, whales and sharks are still accumulating more XRP. Wallets holding between 100,000 and 100 million XRP have increased their holdings from $7.16 billion to $7.89 billion over the past year. These large holders collectively own 26.8% of the total XRP supply in circulation.
Continued XRP Accumulation
While whale activity may be decreasing, the XRP Ledger still sees an average of around 3,800 whale transactions worth $100,000 or more per week.
This data comes at a time when Forbes predicts that a potential economic downturn in the United States could benefit the crypto industry, leading to new price highs for assets like bitcoin (BTC), XRP, and ether (ETH).
Legal Battle with SEC
XRP’s price and activities on the XRPL are also influenced by ongoing legal developments between Ripple and the U.S. Securities and Exchange Commission (SEC). In July, when Ripple won a partial victory against the SEC, XRP’s price surged by approximately 70%, nearly reaching $1.
The legal battle between Ripple and the SEC will extend into the second quarter of 2024. As the case progresses, it is expected that XRP’s price and activities on the XRPL will be impacted by court proceedings.
Hot Take: Whale Accumulation Amidst Declining Activity
While whale activity on the XRP Ledger may be declining, large holders are still accumulating more XRP. This suggests that they have confidence in the future potential of the cryptocurrency despite the current market conditions. The ongoing legal battle between Ripple and the SEC adds an additional layer of uncertainty to XRP’s price and activities. As the case progresses, investors will closely monitor the court proceedings for any potential impact on XRP’s value. Overall, the combination of declining whale activity and continued accumulation by large holders paints an interesting picture for XRP’s future.
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