Following a significant drop in XRP's value, whales have taken advantage of the opportunity to accumulate XRP, with wallets holding 10-100 million XRP collectively purchasing over $16 million worth in a single week.
XRP Whales Capitalize on Market Pullback, Accumulating Millions Amidst Price Volatility
Approximately three weeks ago, XRP experienced a significant fluctuation, reaching a peak of $0.6413 before plunging to a yearly low of $0.4336 within days, representing a sharp decline of 32%. However, this pullback has presented a lucrative buying opportunity for whales, large-scale investors who hold substantial amounts of cryptocurrency.
In the ensuing days, XRP has witnessed a modest recovery, climbing back to around $0.5, an increase of approximately 6%. However, this uptick has been accompanied by concerns regarding a potential sell-off, as over 452 million XRP, valued at over $232 million, has been transferred from unknown wallets to cryptocurrency exchanges such as Bitvavo, Bithumb, and Bitstamp.
Despite the concerns raised by these transfers, whales have remained actively engaged in buying XRP during its recent price drop. Analyst Ali Martinez reported that whales, particularly those holding between 10 and 100 million XRP, acquired over 31 million XRP in a single week, amounting to a purchase worth approximately $16 million. This buying spree has led some experts to speculate that a substantial price increase may be imminent.
The activities of whales have also intensified amidst the ongoing lawsuit between the U.S. Securities and Exchange Commission (SEC) and Ripple, the company behind XRP. Data indicates that whales have moved approximately 70 million XRP, engaging in both buying and selling activities, contributing to the volatility of the asset's price.
Research suggests that large XRP holders tend to increase their buying activity when the price of the cryptocurrency declines. This trend is corroborated by data from Santiment, which shows a rise in the number of wallets holding at least one million XRP. As of April 22, 2,013 such wallets were identified, representing a 3.1% increase in six weeks and approaching the all-time high of 2,014 recorded in June 2023. This surge in buying activity is attributed to XRP's unique position as the only digital asset with clear regulatory guidance in the United States.
Beyond the recent price fluctuations and whale activity, the XRPL Automated Market Makers (AMMs) have also experienced notable growth. XRPL AMMs have locked up over seven million XRP in the past month, with 3.7 million XRP currently locked. Recently, 1.5 million XRP was added to the AMMs in a single week, primarily to the SOLO/XRP pool, which offers the highest return of 2.54% APY. Ripple's plans to launch a lending system and its own stablecoin on XRPL in the near future have further contributed to the optimism surrounding the ecosystem.
