XRP Between Concentration and Price Rally: How Ripple and Whales Shape the Market

Massive Wealth Concentration in XRP

Nearly 19 percent of all circulating XRP is held on just ten wallets ^[1]. This extreme concentration raises fundamental questions about the decentralization of the network and market stability. The so-called rich list clearly shows who can potentially exert influence in the Ripple ecosystem – whether Ripple itself, major exchanges, or anonymous large investors ^[1].

The concentration poses considerable risks for investors. Through escrow accounts, Ripple actively manages the market, which can have direct effects on price development ^[1]. Recently, anonymous whales have conducted transactions in the billions range that significantly influenced market activity ^[1].

Strong Recovery on Wednesday

Despite structural concerns, XRP posted significant gains Wednesday morning. The Ripple coin rose nearly 9 percent over the last 24 hours and is currently trading at $2.2 ^[2]. The cryptocurrency is now targeting the psychologically important $2.5 mark.

The recovery benefits from several factors. On one hand, Bitcoin, Ethereum, and other leading cryptocurrencies also recorded strong gains after the probability of interest rate cuts by the U.S. Federal Reserve increased once again ^[2]. On the other hand, fresh capital from Wall Street continues to flow into XRP products.

Record Inflows Into XRP ETFs

Particularly noteworthy are the ongoing inflows into XRP spot ETFs. For the eleventh consecutive day, the index funds recorded net positive values – inflows since the start of the week alone totaled $157 million ^[2]. The biggest beneficiary of this development is Grayscale's GXRP.

In total, $824 million has flowed into the funds since trading began on November 13 ^[2]. By comparison, Bitcoin achieved inflows of approximately $1.48 billion in its first 13 trading days – though at a significantly higher market capitalization ^[2].

Exchange Outflows Signal Holding Intent

Another positive signal: Data from CryptoQuant shows that more and more investors are withdrawing their XRP holdings from exchanges ^[2]. On Binance, XRP holdings have declined from nearly 3 billion to currently 2.6 billion XRP since mid-October ^[2]. This trend suggests that investors want to hold their tokens long-term, countering potential selling pressure.

Regulatory Progress in Singapore

Ripple receives additional tailwinds from a license upgrade by Singapore's financial regulator ^[2]. With the expanded license, the company can now integrate XRP and its proprietary stablecoin RLUSD even more effectively into its offering for cross-border payments.

Conclusion: Opportunities and Risks in Balance

The current situation for XRP is ambivalent. While price gains and institutional inflows are encouraging, extreme wealth concentration remains a structural problem. Investors should carefully monitor shifts on the rich list, as they are far more than a snapshot – they reveal the actual power dynamics in the Ripple ecosystem ^[1].