XRP Active Wallets Surpass 5 Million Mark: What To Know
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XRP’s 5 Million Active Wallets
The XRP community has reached a significant milestone, with the number of active wallets holding the digital asset surpassing five million. This development, revealed by the leading XRP Ledger explorer XRPScan, marks a notable surge in user participation within the XRP ecosystem.
The journey to this milestone wasn’t without its challenges, as XRP holders’ count stalled in the 4 million range for nearly two years before the recent breakthrough. At the time of this announcement, active XRP addresses stand at 5,000,315.
These wallets collectively house 99.98 billion XRP, signifying a total diluted worth of $56.41 billion.
Insights Into Holdings And Distribution
An insightful breakdown of these holdings reveals that 40.5 billion XRP tokens are locked in escrow, showcasing strategic management of XRP reserves. However, 59.46 XRP billion tokens are circulating, enhancing liquidity and facilitating transactions across the network.
Moreover, a total of 11,988,738 XRP tokens have been sent to dead wallets, highlighting a dedication to managing the token’s supply. Also, the twelve most prominent wallets holding XRP are attributed to Ripple, the notable American crypto payment firm and developer of the XRP token.
Ripple holds around 40 billion XRP tokens in escrow and 5 billion in spendable wallets. Beyond Ripple, other major stakeholders with significant XRP holdings include wallets associated with renowned crypto exchanges such as Uphold, UPbit, Binance, and Kraken.
These exchanges allow seamless XRP trading and transactions and hold substantial quantities of the cryptocurrency. Regarding individual holdings, Chris Larsen, the Chairman of Ripple, has over two billion XRP distributed across five distinct wallets.
His substantial holdings underscore his involvement and his vested interest in the growth of XRP.
Other XRP Holders
A closer examination of the distribution of XRP holdings reveals that 85 wallets hold 500 million XRP or more while 1,520,402 addresses hold 20 or less XRP. These differences in holdings between XRP whales and small XRP holders signify an inclusive participation model within the XRP ecosystem. Also, it demonstrates that a substantial portion of the community holds reasonable amounts of this digital asset.
Ripple CTO’s Caution on XRP Price
Meanwhile, Ripple’s Chief Technology Officer, David Schwartz, recently explained why he refrains from discussing potential factors that could affect the price of XRP. Schwartz cited two main reasons for his refrain: the possibility of being incorrect in his analysis and legal advice, explaining that he doesn’t discuss factors that might influence the future price of XRP.
His hesitation is part of efforts to prevent misinterpretation by investors and regulators. The conversation arose following concerns expressed by an XRP enthusiast regarding Ripple’s escrow program, which releases at least 200 million XRP into the market each month.
The individual argued that Ripple’s core business model involved flooding the market with XRP. In his response, Schwartz clarified that Ripple’s options with the XRP coins locked in escrow are limited to either reducing their holdings or maintaining a significant amount of crypto assets.
Burning Escrowed Coins And Its Impact
When questioned about burning the coins locked in escrow, Schwartz indicated that he couldn’t foresee events that might prompt Ripple to take such an action. Moreover, he expressed skepticism about the positive impact of burning the escrowed coins on XRP’s market value.
Schwartz referenced a scenario in 2018 where a reduction in supply was expected to boost XRP’s price, similar to Stellar’s token burn in 2019. However, the anticipated price surge for that digital asset did not materialize significantly following the burn, indicating that the expected market effects did not occur as predicted.
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