Ripple No Longer Relies on Individual XRP Holders as Whales Amass 330 Million XRP
Ripple has made a clear shift in its strategy away from retail investors, and is focusing its attention on institutions. Business expert Jake Claver explained that Ripple’s success is not tied to individual XRP holders. Instead, the company is targeting large financial institutions and governments for cross-border transactions, moving away from projects that rely on individual adoption.
“While individual investors can hold XRP and use the XRP ledger, Ripple’s primary goal is to facilitate institutional-level transactions and cross-border settlements quickly and efficiently,” Claver said.
Ripple's Corporate Strategy Takes the Lead
Earlier this year, the company announced the launch of the RLUSD stablecoin, which is aimed at institutional clients only. The coin entered beta testing in August, and Ripple CTO David Schwartz confirmed that it will not be available to retail users.
XRP Book Market Cap Decline
However, the XRP ledger ecosystem is facing setbacks. Arthur Kerzhakulov, CEO of XPMarket, revealed that the market cap of XRP ledgers has hit a new low of $80 million.
Whale activity and MVRV ratio indicate market movements.
Additionally, whales in the market have seen significant movements. Over the past week, addresses holding between 10 million and 100 million XRP have accumulated over 330 million XRP, worth around $177 million. This accumulation suggests that the price of XRP could rise in the near future.
Historically, whale activity has had an impact on XRP market performance, with large accumulation often indicating bullish trends.
The relationship between XRP price and the age of the coin from June to September 2024
Additionally, the Average Coin Age (MCA) indicator, which measures how long XRP is held in wallets, has increased. This indicates that long-term holders are holding onto XRP, suggesting increased confidence among investors.
MVRV and Profitability Movement from March to August 2024
In mid-March, the MVRV ratio reached 81.03%, indicating that many XRP holders were in profit and likely sold. By early August, the ratio had dropped to 10.66%, meaning that most holders were in loss and waiting for better prices. In mid-August, the ratio rose to 50.65%, indicating renewed confidence among investors.
Whales and Institutional Interest May Determine XRP’s Path
The interplay between institutional interest and whale accumulation could determine XRP’s trajectory in the coming weeks. More importantly, Ripple’s shift toward institutional solutions, coupled with whale activity, positions the token for potential market gains, though its use cases in DeFi and individual adoption remain limited.
Source: CoinChapter
