XRP Whales Stockpile 67.2% of Supply Amidst Price Drop
Large XRP token holders, commonly referred to as whales, have been steadily accumulating the native token of the XRP Ledger, now controlling a staggering 67.2% of the cryptocurrency’s circulating supply. This marks the highest accumulation since December 31, 2022.
According to on-chain analytics firm Santiment, the price of XRP is currently at risk of dipping below the $0.50 mark for the first time since October. Interestingly, during this time, whale transactions exceeding $1 million on the network spiked to 217 in a single day.
Santiment highlights that these figures represent the largest number of whale transactions above the $1 million threshold in a single day since Judge Analisa Torres of the United States District Court for the Southern District of New York issued a complex ruling in the SEC vs Ripple Labs lawsuit. This legal battle accused Ripple Labs, along with its executives Chris Larsen and Brad Garlinghouse, of unlawfully offering and selling unregistered securities with XRP.
Judge Torres clarified that Larsen and Garlinghouse’s XRP sales were conducted through blind bid/ask transactions on digital asset exchanges and did not meet the criteria to be considered investment contracts. She also emphasized that XRP, as a digital token, did not inherently fulfill the requirements for an investment contract. Furthermore, she stated that secondary market sales of XRP could not be classified as investment contracts since they were not linked to Ripple.
Santiment also suggests that there are several “key signals” indicating that XRP is a strong contender for a rebound. Currently trading at $0.506, XRP has experienced a slight 1% decrease in value over the past week.
Featured image via Pixabay.