The number of XRP addresses containing at least 1 million tokens has decreased dramatically in the last two weeks.
Wallets holding large XRP positions are rapidly sinking as a result of the U.S. Securities and Exchange Commission’s lawsuit against Ripple. Industry data reveals how fast these so-called XRP whales are sinking.
Coin Metrics, a leading data provider in all things cryptomonal and blockchain, estimated that the number of wallet addresses holding at least 1 million XRPs has dropped to 1,567 from 1,721 between December 21, 2020 and January 3. In other words, it appears that the XRP whales are liquidating a portion of their properties amidst the regulatory uncertainty surrounding Ripple.
As the following table from Immediate Bitcoin Metrics illustrates, the XRP’s 1 million token club had been steadily increasing since early 2019 before falling sharply in late December. Addresses with at least 1 million XRP are at the lowest level since October 2019.
XRP holders have been disturbed by SEC allegations that Ripple violated regulations by selling $1.3 billion worth of unregistered securities. The lawsuit filed by the securities regulator caused the price of XRP to drop by more than 70% as exchanges and fund managers began to distance themselves from the project.
On Tuesday, Grayscale Investments announced that its Digital Large Cap Fund had been completely liquidated from its XRP holdings. Bitwise Asset Management removed XRP from its holdings before Christmas.
XRP is the only defect in optimistic weeks for the crypto market. Each currency in the top 15 crypto assets by market capitalization generated a profit on Tuesday, with the exception of XRP, according to CoinMarketCap data.
What’s more, XRP is close to being outperformed by Litecoin (LTC) in market capitalization ratings. As Cointelegraph reported earlier, LTC briefly dethroned XRP for fourth place over the weekend. At the time of publication, XRP’s market value was only $140 million higher than Litecoin’s.