In the days leading up to a significant price jump in mid-August, XRP saw an intriguing activity in on-chain data that indicated a surge in large wallet creation. Insights from Santiment Intelligence noted that 85 new XRP Ledger addresses holding at least 1 million XRP appeared just two days before the cryptocurrency’s value skyrocketed by 67% from August 17 to August 21.
What Sparked the Spike in Large Wallets?
The surge correlated to a notable 4.2% daily increase in addresses containing 1 million XRP or more. During this time, XRP’s price climbed from $0.98 to $1.64. Although it’s uncertain if this rise was purely driven by major investor purchases, the timing heightens the significance of changes in large wallet balances.
Before this rapid increase, there were about 2,025 addresses holding a minimum of 1 million XRP. The addition of 85 new addresses brought the total closer to 2,110, eventually reaching approximately 2,117. Notably, this expansion occurred just before the price breakout, underlining its relevance.
Will Corrections Affect Large Address Figures?
Despite some retracement following the rally, recent Santiment data reveals that the number of wallets with holdings of 1 million XRP or more remained above 2,100 during the correction phase. This suggests that while the price dipped, the count of significant addresses maintained its elevated level.
This maintenance of high address numbers during price declines does not definitively prove ongoing buying activity but confirms that the initial increase in large wallets hasn’t been entirely reversed.
Is Institutional Interest Growing?
Indeed, the on-chain movements coincide with a growing institutional interest in XRP. Investment products traded in the U.S. provide new access points for investors. Remarkably, XRP ETFs continued to attract capital even as Bitcoin funds experienced significant outflows.
Ripple-backed Evernorth accumulated around 473 million XRP for its treasury, ahead of a planned public offering. This initiative could forge a new link between traditional investors and the digital asset. Known for its focus on cross-border payment infrastructure, Ripple is making strategic moves in the market.
- XRP’s mid-August surge was preceded by a significant increase in large wallet addresses.
- 85 new addresses boosted the count of wallets with at least 1 million XRP.
- The number of large addresses remained high even as XRP prices corrected.
- Institutional interest remains robust, with ETFs continuing to draw investment.
XRP’s more defined legal clarity compared to many crypto counterparts continues to attract interest, amidst ongoing regulatory scrutiny of the cryptocurrency sector within the United States. This factor plays a role in sustaining attention towards the asset.
