Wallets holding outsized XRP positions are plunging shortly within the wake of the US Securities and Trade Fee’s lawsuit towards Ripple. Trade information reveals simply how shortly these so-called XRP whales are sinking.
Coin Metrics, a number one information supplier on all issues cryptocurrency and blockchain, estimated that the variety of pockets addresses holding not less than 1 million XRP has dropped to 1,567 from 1,721 between Dec. 21, 2020 and Jan. 3. In different phrases, it seems that XRP whales are liquidating a portion of their holdings amid regulatory uncertainty surrounding Ripple.
As the next chart from Coin Metrics illustrates, XRP’s 1 million token membership had been rising constantly since early 2019 earlier than plunging sharply in late December. Addresses holding not less than 1 million XRP are on the lowest stage since October 2019.
Addresses holding not less than 1 million XRP through CoinMetrics
Holders of XRP have been rattled by the SEC’s accusations that Ripple violated rules by promoting $1.3 billion price of unregistered securities. The lawsuit initiated by the securities regulator triggered a greater than 70% drop in XRP worth as exchanges and fund managers started to distance themselves from the venture.
On Tuesday, Grayscale Investments introduced that its Digital Massive Cap Fund had been totally liquidated of its XRP holdings. Bitwise Asset Administration eliminated XRP from its holdings earlier than Christmas.
XRP is the one blemish on an in any other case rosy few weeks for the cryptocurrency market. Each coin within the prime 15 crypto belongings by market capitalization printed good points on Tuesday, excluding XRP, in keeping with CoinMarketCap information.
What’s extra, XRP is near being overtaken by Litecoin (LTC) out there cap rankings. As Cointelegraph beforehand reported, LTC briefly flipped XRP for the fourth spot over the weekend. At press time, XRP’s market worth was solely $140 million larger than Litecoin’s.