The number of XRP addresses containing at least 1 million tokens has fallen sharply in the past two weeks
Portfolios that hold large numbers of XRP are deteriorating rapidly following the US Securities and Exchange Commission lawsuit against Ripple. Industry data reveals how quickly these so-called XRP whales drowned.
CoinMetrix, the leading data company for cryptocurrency and blockchain, estimated that the number of wallet addresses containing at least 1 million XRP increased to 1,567 from 1,721 between December 21, 2020 and January 3. In other words, it looks like XRP whales are filtering some of their belongings amid the regulatory uncertainty surrounding the journey.
As the following graph from CoinMetrix shows, the total number of XRP addresses containing one million tokens has been steadily increasing since the start of 2019 before dropping sharply at the end of December. Securities with at least 1 million XRP are at their lowest level since October 2019.
XRP holders were alarmed by SEC accusations that Ripple had violated regulations by selling $ 1.3 billion in unregistered securities. A lawsuit filed by the Securities Regulatory Authority saw the price of XRP drop by more than 70% as stock exchanges and fund managers began to distance themselves from the project.
On Tuesday, Grayscale Investments announced that its Digital Large Cap Fund had been fully liquidated from holdings of XRP. Bitways Asset Management removed XRP from its holdings before Christmas.
XRP was the only downside in the bullish few weeks in the cryptocurrency market. Every coin among the top 15 crypto assets by market value posted gains on Tuesday, excluding XRP, according to data from CoinMarketCap.