Bitrabo Editorial
With a significant number of whale addresses, XRP has captured attention due to the concentration of supply in these large wallets. This scenario, as pointed out by XRP advocate Chad Steingraber, is set to create a scarcity issue in the near future, particularly with the impending conclusion of the SEC lawsuit against Ripple.
Rising Number of XRP Whales Raises Scarcity Alarms
Despite being created with a total supply of 100 billion XRP tokens, XRP has managed to maintain scarcity, a fact emphasized by Steingraber, who highlighted that the actual public supply is much lower than perceived. One reason for this scarcity is Ripple’s control over a significant portion of the supply through an escrow system that gradually releases tokens each month. With approximately 40 billion XRP tokens locked in this system, the circulating supply remains limited. The demand surpassing this restricted supply has led to intense buying pressure on the XRP available on exchanges.
Besides the tokens in escrow, the accumulation of XRP by whales poses a threat to the availability of XRP for retail traders. Out of the 55.6 billion XRP in circulation, the top 10 addresses hold around 11.2 billion XRP, while the top 50 addresses control nearly half of the total supply.
Comparatively, the top 103 Bitcoin addresses own less than 16% of the circulating Bitcoin supply, showcasing a stark contrast in supply distribution between the two cryptocurrencies. This imbalance between supply and demand sets the stage for XRP whales to maintain dominance over the circulating supply.
Implications for XRP’s Future
The concentration of XRP among fewer holders could lead to a significant price surge if these whales opt not to sell. While heightened scarcity may concern new retail traders looking to invest in XRP, it also signifies strong confidence in XRP’s future price performance. Retail trading determines the price, indicating that increased demand from retail investors will ultimately drive up the price.
Currently trading at $0.4759, XRP has experienced a 6.28% drop in the last week. However, this decline has appeared to stabilize in the past 24 hours, with potential bullish activity around $0.4620, setting the stage for an intriguing price movement in July. Historical data suggests that XRP has demonstrated positive price action in July over the past four years.
In July 2023, XRP saw a 47.6% price increase after an 8.15% dip in June 2023. With a similar 8.18% decline in June 2024, a replication of this trend could see XRP closing July around $0.70.