In the dynamic world of cryptocurrency, Ripple’s XRP token remains a focal point for large investors, known as whales. Recent data reveals that these investors now hold a record 67.2% of XRP’s circulating supply. This level of concentration highlights the significant interest whales have in Ripple, despite the broader market’s fluctuations.
Whale Transactions Surge Amidst Ripple’s Legal Milestones
Blockchain analytics firm Santiment has reported a spike in whale transactions on the XRP Ledger, with a single-day high of 217 transactions exceeding $1 million each. This surge coincides with a pivotal legal victory for Ripple Labs in the SEC lawsuit, where the court favored Ripple’s executives, Chris Larsen and Brad Garlinghouse, over the SEC’s allegations of unlawful securities offerings.
Despite the increased activity by whales, XRP’s price remains under pressure, struggling to maintain the $0.50 mark. The recent court ruling by Judge Analisa Torres has been a positive development for Ripple, as she determined that XRP sales by Larsen and Garlinghouse do not constitute an investment contract under the Howey Test, thus not falling under the purview of the SEC’s securities regulations.
Further bolstering Ripple’s position, Judge Torres clarified that XRP, being a cryptocurrency, naturally does not satisfy the Howey Test’s criteria for an investment contract. She emphasized that secondary market sales of XRP cannot be deemed investment contracts since the proceeds do not revert to Ripple Labs.
Amidst these legal developments, the XRP Ledger continues to gain traction among Web3 enthusiasts, with an uptick in the number of wallets holding more than 1 XRP. This trend suggests a growing adoption of the Ripple network, even as XRP trades around $0.506, reflecting a slight decline in value over the past week.