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A recent observation from crypto expert CryptoTank has highlighted a persistent misunderstanding regarding the magnitude of the XRP community. His message concentrated on the frequently cited figure of seven million XRP wallets and elaborated on why this statistic does not accurately reflect the count of genuine holders.
This elucidation comes at a moment when XRP is now set to begin attracting institutional investments from the newly introduced Canary Spot XRP ETF.
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Why Wallet Quantity Doesn’t Equal Holder Quantity
CryptoTank pointed out that nearly 7 million wallets containing XRP does not equate to millions of individuals possessing the asset. He mentioned that he personally holds approximately 30 wallets, and most dedicated XRP investors generally manage between four and six on average. This implies a single person can show up multiple times in on-chain data, rendering the total wallet count an unreliable measure of how many authentic participants exist.
The perspective is straightforward: the actual figure of unique XRP holders is significantly lower than widely believed, and he estimates that the real count rests comfortably beneath 1 million globally. This illustrates a community that is still in its nascent stages in comparison to other prominent digital assets. If merely a portion of those seven million addresses belong to distinct individuals, then the individuals currently holding XRP represent a considerably smaller, far earlier segment than predictions suggest.
CryptoTank characterized this segment as being “way ahead” of the rest of the world, indicating that present holders find themselves in a position that could become significantly more valuable once greater participation finally materializes.
A limited holder base implies that any substantial increase in demand, whether from retail or institutions, could lead to a pronounced impact on price since the XRP price has yet to witness the kind of mass inflow experienced in prior cycles for Bitcoin and Ethereum.
Institutional Growth With Spot XRP ETF
This conversation occurs at a crucial juncture for XRP, especially with the advent of the newly launched Spot XRP ETF in the United States. The product expands XRP’s access beyond its initial holder base, permitting both institutions and retail traders in regulated markets to invest in the cryptocurrency.
Should the actual number of XRP holders be small, the emergence of ETF demand could signify a pivotal moment. As inflows increase, this novel access point may represent the onset of a transition from an early-holder community to a broader network of institutional and retail participants.
In discussing inflows, Canary’s Spot XRP ETF commenced its first complete trading day with $243.05 million in inflows on November 14, based on data from SoSoValue.
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This wasn’t mirrored in the price of XRP, however, as the cryptocurrency has declined alongside the overall market. At the time of writing, XRP is priced at $2.26, down by 1.4% in the last 24 hours.
Featured image from Unsplash, chart from TradingView
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