The surge in XRP whales poses a threat to the availability of XRP for retail trading, with control over nearly half of the current XRP supply being concentrated among these large holders. Ripple’s controlled escrow system, which releases a limited amount of XRP each month, has artificially created scarcity within the XRP market. Surprisingly, XRP hosts a higher number of whale addresses than commonly perceived, leading to a notable aggregation of supply in these whale wallets.
The issue of supply concentration was recently highlighted by XRP supporter Chad Steingraber, gaining attention on social platforms. As the SEC case against Ripple approaches its conclusion, the existing supply distribution hints at potential supply constraints for XRP in the near future. The public supply of #XRP is notably lower than widely believed, with the likelihood of never witnessing the full 100 billion XRP supply on the open market. Instead, it is anticipated to dwindle to a scarce quantity, emphasizing the pivotal role of retail trading in determining price movements.
An upsurge in XRP whales has raised concerns about scarcity within the market. Despite the initial circulation of 100 billion XRP tokens, the controlled release mechanism by Ripple has maintained its rarity. Steingraber emphasized the significant disparity between perceived and actual public supply, attributing part of XRP’s scarcity to Ripple’s management of approximately 40 billion XRP coins through escrow mechanisms.
This controlled supply dynamic has resulted in a constrained circulating supply, intensifying the buying pressure on the limited XRP available on exchanges due to overwhelming demand. Additionally, the recent accumulation of XRP by whales poses a significant risk to retail traders. Among the current circulation of 55.6 billion XRP tokens, the top 10 addresses control a substantial 11.2 billion XRP, while the top 50 addresses manage nearly half of the existing supply, amounting to 26.9 billion XRP.
In comparison, the top 103 Bitcoin addresses own less than 16% of the total Bitcoin supply, highlighting the pronounced supply concentration within XRP. This imbalance in supply and demand solidifies the position of XRP whales in maintaining control over the circulating supply. Market data from CoinGecko reveals XRP’s current price at $0.4739, reflecting a slight decline of 0.58% from the previous day and a 3.69% decrease over the past week.
Recent reports indicate a 170% surge in XRP trade volume to $1.035 billion, alongside approximately 10 million XRP locked in AMM pools of the XRP Ledger. For more insights and updates on Ripple (XRP), consider subscribing to our daily newsletter for accurate and informative content. Unsubscribe anytime at your discretion; we promise no spam, only valuable insights into the dynamic world of Ripple (XRP).
