Large addresses on the $XRP Ledger, a blockchain platform that enables fast, low-cost payments across the globe, have been “rapidly accumulating” tokens before the end of the year, with data showing that both the number of large addresses and the percentage of supply they control have hit a new all-time high.
According to data from on-chain cryptocurrency analytics firm Santiment, $XRP addresses holding between 1 million and 10 million tokens – so-called whale and shark addresses – have been rapidly accumulating to the point 1,617 addresses hold a total of 7.23% of the cryptocurrency’s supply.
The figures mark a significant increase relative to the last few months, suggesting these large holders are positioning themselves on the market while expecting a significant price movement in the future.
A potential move could come after the U.S. Securities and Exchange Commission (SEC) and Ripple settle their ongoing legal battle. The SEC sued Ripple and two of its executives in 2020, alleging they sold unregistered securities when they issued $1.3 billion worth of XRP tokens. Ripple denies XRP is a security.
Earlier this year, Ripple’s CEO Brad Garlinghouse noted that he believed the company would prevail in its legal battle against the regulator. Over the past few weeks, a number of influential cryptocurrency firms, including Coinbase and the Blockchain Association, filed to support Ripple.
n a reply in support of a motion for summary judgment, Ripple’s lawyers argued that the regulator has failed to show that any offer or sale of XRP was an investment contract under federal securities laws.
Ripple settling the lawsuit could lead to an XRP supply shock, which presumably would lead to a price surge as demand would remain the same, while supply plunged. That’s according to legal expert and XRP supporter Jeremy Hogan, who has been following the case.
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