Once a powerful player in the cryptocurrency industry, XRP has been suffering from a prolonged decline. Prices continue to fall and market power is diminishing, a worrying trend. Large holders, known as ‘whales’, are increasingly reducing their XRP holdings. Despite the surge in on-chain activity, these factors paint a worrying picture for the future of the asset. XRP whales selling their holdings will only face more and more difficulties.
Top 6 coins on Markertcap. Source: CoinMarketCap
XRP Whale sells holdings as XRP trail competitor
CoinMarketCap reveals a worrying situation for XRP. The cryptocurrency has significantly underperformed its larger peers in recent weeks, returning only 4%. This stands in stark contrast to the significant rallies seen in Bitcoin, Ethereum, etc. The SEC’s lawsuit against Ripple, along with the ongoing bear market, has contributed to XRP’s woes. Market values have plummeted since their peak in January 2018.
XRP Whales and Regulatory Issues
XRP’s struggles are not new. The cryptocurrency is suffering from the aftermath of the Securities and Exchange Commission (SEC) lawsuit against its parent company, Ripple. This lawsuit, combined with the 2022 bear market, has taken a huge toll on the value of XRP. This has significantly reduced XRP’s market dominance from a peak of 30% in 2017 to 1.48% as of February 2024.
XRP/USD daily price chart. source. TradingView
Moreover, the impending large-scale trial scheduled for April 23, 2024 adds another layer of uncertainty to XRP’s future. Despite a partial victory in court last year, Ripple’s legal battle with the SEC remains unresolved and investors are wary of potential regulatory implications.
Adding to the concerns, Santiment’s insights reveal a worrying trend of XRP whales and major cryptocurrency holders selling their holdings. The data shows a decline in confidence, with XRP supply as a percentage of revenue falling from nearly 90% to less than 80%. This downturn suggests that whales are selling off their holdings and are taking a bearish view on XRP’s prospects.
Historically, after BTC halvings, XRP has recorded massive price surges, often surpassing the price of BTC. However, it is unclear whether the same trend will recur despite the current challenges.
A glimmer of hope?
Although the situation looks bleak, there may be a glimmer of hope for XRP. A recent report from the International Monetary Fund (IMF) highlights the importance of digital currencies and mentions Ripple’s collaboration with Palau on a sovereign stablecoin project. This could attract positive attention, but it remains to be seen whether XRP can overcome its current hurdles.