- Large XRP holders are withdrawing their tokens from exchanges, signaling a possible supply shortage and price surge..
- Active XRP addresses have surged by 620% in a week, reflecting growing network activity.
Recent data has revealed that large XRP holders are moving their holdings off exchanges and into private wallets. This trend, combined with a sharp increase in active XRP addresses, has sparked speculation about a possible supply shortage and price surge.
What’s Happening with XRP?
Crypto researchers have observed a significant shift in the token’s market dynamics. Large investors are pulling their XRP off exchanges like Binance, reducing the available supply on trading platforms. This behavior often indicates that whales are holding onto their tokens, possibly anticipating future price increases.
Crypto analyst Steph further fueled this statement with a tweet stating, “BREAKING: #XRP IS DISAPPEARING FROM EXCHANGES WHILE WEAK HANDS SELL! WHAT DO THE WHALES KNOW THAT WE DON’T?”
Adding to this trend, the number of active addresses has skyrocketed. According to crypto expert Ali Martinez, active addresses jumped from 74,589 to 462,650 in just one week, a 620% increase. “The number of active XRP addresses has skyrocketed by 620% in the past week, climbing from 74,589 to 462,650,” he said. This surge suggests growing interest and activity within the XRP ecosystem.
The XRPL is also expanding rapidly. Since early 2024, the number of accounts on the ledger has grown by 24%, reaching 6.2 million. This growth, along with increased trust line connections between accounts, highlights the network’s rising popularity.
Several key factors have driven the increasing utility of the XRPL, including XRP’s rising price and growing institutional interest. For instance, the token experienced a remarkable surge of over 500% in November following Donald Trump’s election victory.
This bullish trend persisted into January, when the token achieved its highest closing price in history. Although prices have since pulled back significantly, adoption of the XRP Ledger (XRPL) network has continued to grow steadily. Additionally, the surge in meme coin activity has played a significant role in the increase of XRPL accounts and trustlines.
Moreover, institutional interest in the ecosystem has expanded as the likelihood of regulatory clarity has improved, following years of legal battles with the U.S. Securities and Exchange Commission (SEC). This growing optimism has led to multiple asset managers filing applications for exchange-traded funds (ETFs), further bolstering the appeal of XRP and the XRP Ledger.
What Does This Mean for XRP’s Price?
XRP is at the time of writing trading at $2.47, with a 24-hour trading volume of $8.18 billion. The price has risen by 5.16% amid these developments.
Additionally, the token’s market cap currently stands at $144.06 billion after a 1.49% surge.
The combination of whales accumulating XRP, declining exchange reserves, and increased network activity has created a bullish outlook for the token.
