The number of addresses with massive XRP holdings are drastically reducing, following the lawsuit filed by the United States Securities and Exchange Commission (SEC) against Ripple.
According to Coin Metrics, a leading blockchain and crypto analytic firm, the number of wallets holding at least 1 million XRP have experienced a drastic plunge from 1,721 to 1,567 between 21st December 2020 and 3rd January 2021.
Considering the estimation above, XRP whales are likely liquidating a portion of their holdings, due to the regulatory uncertainty surrounding Ripple and its native token XRP.
According to the following Coin Metrics’ illustrative chart, the one million XRP holders were rising consistently since early 2019, but started plunging in late December 2020, following the lawsuit announcement. Based on the data, addresses with at least 1 million XRP have now fallen to the lowest since October 2019.
Addresses holding at least 1 million XRP via CoinMetrics
The major reason behind the huge plunge and the fear exhibited by the XRP holders is nothing other than the lawsuit filed by SEC against Ripple, for allegedly selling $1.3 billion worth of unregistered securities.
This particular lawsuit left XRP in a bad shape in terms of price. The cryptocurrency lost over 60% of its accumulated value. Some exchanges and crypto-related firms also decided to delist XRP from their platform.
Grayscale Investment Removes XRP from its Digital Large Cap Fund
XRP was recently hit by another huge blow, after the world’s largest digital assets manager, Grayscale investment announced the removal of the cryptocurrency from its Digital asset Cap Fund.
Obviously, it has been difficult for XRP holders in the last two weeks. Without XRP and Ripple’s saga, the story in the crypto market has been fantastic. Bitcoin (BTC) surged significantly, while Ethereum (ETH) is getting closer to recording new all-time highs.
Things have been good for Ripple and XRP until the securities regulator brought its filing to the public notice on 22nd December 2020. At press time, XRP is priced at $0.226125, with a 2.34% price downtrend based on 24H estimation.
According to CoinMarketCap, over the last 24 hours, every top 15 cryptocurrencies recorded huge gains, except XRP.
The future of the cryptocurrency is now hanging on whatever the court says. But before that plays out, many XRP whales are expected to dump more of their positions in XRP, in order to be on a safer side.