XRP is the cryptocurrency of the Ripple network. It came into existence in the year 2012. Since then, there has been no turning back for XRP and its rising popularity. In fact, in the current era, XRP has emerged as one of the most prominent players in the digital asset arena. In recent months, the popularity of XRP as a crypto asset has been scaling new heights.
In order to uncover the reason for the surging popularity of XPC, you definitely need to take a look at the top XRP holders. That’s right! Today, many investors are wondering about the holders who own the majority of XRP. It is certainly a highly intriguing question in the current crypto space. Let’s dive deeper into the topic to identify major XRP holders and their ownership distribution.
Build your identity as a certified blockchain expert with 101 Blockchains’ Blockchain Certifications designed to provide enhanced career prospects.
An Insight into Major XRP holders
There are certain XRP Holders who are ruling the Ripple network. So it is obvious for many investors to wonder about the holders who own the majority of XRP. It is certainly a highly intriguing question in the current crypto space. Let’s look at some of the top XRP holders who are dominating the Ripple space today
In the XRP holders chart, Ripple Labs definitely holds the top spot. However, one must remember that a majority of these tokens remain locked in escrow. It implies that these tokens are released on a periodical basis in pre-set amounts. This is done to ensure that Ripple Labs’ ability to freely access these funds is curbed properly.
An interesting fact you need to know is that one of the wallets of Binance exchange has more than 1.3 billion XRP. It constitutes approximately 1.83 % of the circulating supply of crypto tokens. Although the value of XRP held by Binance may seem small in comparison to that of Ripple Labs, it is still a reasonably large amount.
Many Uphold users utilize its XRP wallet to store their XRP tokens in a safe and secure manner. This automatically makes Uphold a major holder of XRP holders. Uphold’s involvement reinforces the role of XRP tokens in mainstream adoption.
The fact that Bitbank holds a considerable value of XRP tokens shows the immense potential of XRP as a cryptocurrency. One of the reasons for Bitbank’s prominent role in the XRP crypto ecosystem is Japan’s keen interest in the seamless cross-border solution that is offered by Ripple.
Excited to learn the basics of cryptocurrency and the ways in which blockchain technology empowers cryptocurrencies, Enroll now in the Cryptocurrency Fundamentals Course
An Insight into Holding Distribution
It is essential to know that the overall distribution of XRP tokens varies significantly among wallets. The digital wallets that hold 1 million to 10 million XRP tokens account for approximately 6.42 % of the entire supply of the specific cryptocurrency. On the other hand, smaller digital wallets with holdings ranging between 1,000 and 100,000 XRP tokens control almost 7.53 % of its supply.
The top ten holders of XRP collectively hold around 41 % of the total supply of XRP tokens. Similarly, when looking at the top twenty holders of XRP tokens, it can be said that they hold around 50.31 % of the entire supply of these tokens. Thus, there is a skew toward larger holders of XRP tokens. Smaller investors in the XRP space represent a minor component of the total supply of the XRP tokens.
What Does the Ownership Distribution Mean?
When it comes to XRP tokens, the ownership distribution is definitely unique. In fact, it raises a plethora of questions relating to the distribution of wealth within the specific crypto ecosystem. The large-scale holdings by exchange, as well as Ripple Lab, paint a picture revealing that a relatively small group of stakeholders dominate the XRP ecosystem.
The concentration of a few stakeholders in the XRP realm gives rise to a unique set of opportunities as well as risks. One of the main opportunities revolves around the fact that institutions and entities get a chance to participate within the XRP ecosystem. This is definitely good news for these potential parties who wish to enter the XRP space and hold these tokens. Furthermore, the involvement of institutions automatically enhances stability as well as the liquidity of these tokens.
However, on the downside, it gives rise to the risk relating to market manipulation. It is a serious source of concern, especially for small investors in the XRP space. Another risk that you cannot ignore is related to the volatility in terms of the price of these cryptocurrencies. If top XRP holders want to liquidate their tokens, it may destabilize the market and affect all the participants within the XRP ecosystem. Thus, ripple ownership distribution has the potential to give rise to a number of positive and negative effects that you cannot ignore.
Start learning Blockchain with World’s first Blockchain Career Paths with quality resources tailored by industry experts Now!
Effect of Centralized Ownership
In the XRP ecosystem, power remains in the hands of a few players. This has automatically led to centralized ownership. As a result, individual investors have questions in their minds regarding the impact of such ownership on market behavior. It is an important aspect that you need to look at if you wish to purchase XRP tokens.
If top XRP holders such as Ripple Labs decide to sell a considerable portion of their holdings, its price may be affected. This is because there might be a significant drop in the prices of XRP tokens. On the other hand, investors’ solid market confidence coupled with the controlled releases of XRP tokens may improve market stability.
Conclusion
Today, XRP has certainly emerged as one of the most popular cryptocurrencies in the digital realm. A small number of XRP holders have been playing a domineering role in the XRP ecosystem. It has automatically led to the centralization of ownership in the XRP crypto space. Such a form of ownership distribution has certainly given rise to unique opportunities and risks that one must look into before investing in these cryptocurrencies.
*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!
