XRP Whales Keep Buying Despite 29% Market Cap Collapse

The number of XRP wallet s holding at least 1 million tokens has increased over the past three months, even as the cryptocurrency's market capitalization has fallen sharply, according to blockchain analytics platform Santiment. Santiment data shows that 32 additional wallets have joined the group holding at least 1 million XRP during the period. The increase comes despite XRP's market capitalization declining by approximately 29%. The divergence between wallet accumulation and market capitalization is attracting attention because it suggests that some large XRP holders continue to maintain or increase their exposure even while the broader market value of the asset has weakened. The development was also highlighted in crypto market coverage, including by Cointelegraph, as investors continue to monitor the behavior of large XRP holders for potential clues about the token's next major move. Source: XPost XRP Whale Wallets Continue to Grow Wallets holding at least 1 million XRP are generally considered large holders because of the substantial amount of tokens controlled by each address. According to Santiment, the number of wallets in this category increased by 32 over the past three months. The increase is notable because it occurred during a period in which XRP's market capitalization declined by nearly one-third. That creates an interesting contrast. While the overall market value of XRP decreased, the number of large wallets increased. This could indicate that some investors are using periods of weakness to accumulate XRP rather than reduce their exposure. What the Increase in Large Wallets Could Mean An increase in large XRP wallets can have several possible explanations. Some existing holders may have accumulated additional tokens and crossed the 1 million XRP threshold. Other investors may have transferred XRP between wallets, creating new addresses that meet the threshold. Institutional or high-net-worth investors could also potentially be increasing their holdings. Because blockchain data tracks wallet balances rather than the identities or intentions of wallet owners, the numbers do not provide a definitive explanation. Nevertheless, changes in large-holder behavior can provide valuable insight into market structure. XRP Market Cap Falls 29% The increase in large wallets is especially notable because it happened while XRP's market capitalization declined by approximately 29%. Market capitalization is calculated by multiplying the asset's price by its circulating supply. A decline in market capitalization can therefore reflect falling prices, changes in circulating supply or a combination of factors. In XRP's case, the divergence between market capitalization and whale wallet numbers suggests that investor behavior may be changing beneath the surface. The market price may be weakening while certain large holders remain confident in the asset's longer-term prospects. Large Holders Can Influence Market Sentiment Whale activity is closely watched throughout the cryptocurrency market. Large holders control significant amounts of supply, meaning their buying or selling decisions can potentially influence liquidity and market sentiment. When whale balances increase, traders may interpret the activity as a sign of accumulation. When large holders move significant amounts of tokens to exchanges, investors may become concerned that those assets could be sold. However, wallet data should always be interpreted carefully. A wallet holding 1 million XRP does not necessarily belong to a single individual. Some addresses can belong to exchanges, custodians, institutions or other entities that manage funds on behalf of many users. Accumulation During Market Weakness One of the most interesting aspects of the latest data is the timing. The number of large XRP wallets increased while the market capitalization declined. This could suggest that some investors view lower prices as an opportunity to build larger positions. Accumulation during periods of weakness is not unusual in financial markets. Investors with a long-term outlook may be more willing to purchase assets when prices fall because they believe the market is undervaluing them. However, accumulation does not guarantee that prices will rise. Investors can accumulate an asset for extended periods while its price continues to decline. XRP Investors Appear to Be Divided The latest data points to a market in which investor sentiment may be divided. Some traders may be responding to the decline in XRP's market capitalization by reducing their positions. At the same time, another group of investors appears to be maintaining or increasing large holdings. That difference in behavior can create significant market tension. Short-term traders often focus on price momentum and technical signals. Long-term holders may focus more heavily on adoption, ecosystem development and future demand. XRP Remains One of the Most Watched Crypto Assets XRP continues to attract significant attention among cryptocurrency investors. The token has developed a large global community and remains one of the most actively followed digital assets. Its market performance is frequently influenced by developments involving payments, blockchain adoption, regulation and broader cryptocurrency market conditions. Because of that visibility, changes in XRP whale activity can quickly become a major topic among traders. Santiment Data Provides an On-Chain Perspective Santiment specializes in blockchain and market analytics. Its data allows investors to examine wallet behavior, network activity, social sentiment and other indicators that may not be visible through traditional price charts. On-chain metrics can provide a different perspective on market conditions. Instead of focusing exclusively on price, traders can examine what investors are doing with their assets. The increase in XRP wallets holding at least 1 million tokens is an example of how blockchain data can reveal changes in market structure. Why the 32-Wallet Increase Matters Thirty-two additional wallets may appear relatively small compared with the enormous number of XRP addresses across the network. However, the threshold involved is important. Crossing the 1 million XRP level requires a substantial position. The increase therefore suggests that a measurable group of large holders has expanded or emerged during the three-month period. The significance becomes even greater when considered alongside the 29% decline in market capitalization. Whale Accumulation Does Not Guarantee a Rally Despite the potentially bullish interpretation, investors should avoid assuming that whale accumulation automatically means XRP is about to surge. Large holders can make mistakes. They can accumulate during a decline that continues for months. Wallets can also represent businesses, exchanges or custodians rather than individual investors. For that reason, whale data is best considered one indicator among many. Price action, trading volume, liquidity, network activity and broader market conditions remain important. Exchange Flows Could Provide More Clues One metric traders may watch next is XRP exchange activity. If large holders are accumulating XRP while simultaneously withdrawing tokens from exchanges, the combination could provide stronger evidence of potential long-term accumulation. Conversely, if large wallets continue increasing while significant amounts of XRP move toward exchanges, the picture becomes more complicated. Exchange inflows can indicate that tokens may become available for trading or potential selling. That does not mean every exchange deposit results in a sale, but the trend can still provide useful context. XRP Supply Dynamics Remain Important XRP's market structure is also influenced by its overall token supply. Investors monitor circulating supply, large-holder balances and movements between wallets when evaluating potential changes in market dynamics. If a growing number of large holders choose to hold XRP rather than sell, the amount of readily available supply could potentially decrease. If demand rises at the same time, that could create upward pressure on price. However, the opposite can occur if large holders begin distributing their positions. The Role of Market Sentiment Investor sentiment can have a major impact on XRP. Positive developments can attract new buyers and increase trading activity. Negative news can encourage investors to reduce risk. The current divergence between XRP's market capitalization and large-wallet growth suggests that sentiment among major holders may be more resilient than the broader market price indicates. That could become important if overall cryptocurrency sentiment improves. Broader Crypto Market Conditions Matter XRP does not operate independently from Bitcoin and the wider digital asset market. Bitcoin's direction often influences liquidity and risk appetite across cryptocurrencies. When Bitcoin enters a strong uptrend, capital can move into major altcoins such as XRP. When Bitcoin falls sharply, altcoins can experience even greater volatility. XRP's future performance will therefore depend not only on whale behavior but also on the broader market cycle. Institutional Interest Could Be Important Large XRP wallets can potentially include institutional participants, although blockchain data alone cannot confirm the identity of individual wallet owners. Institutional interest could become increasingly important if regulated investment products, payment applications or other financial infrastructure creates additional demand for XRP. A stronger institutional presence could also change the way large holders behave. Instead of short-term trading, some institutions may maintain longer investment horizons. The Long-Term XRP Thesis XRP supporters often point to its potential role in digital payments and cross-border transactions. The broader thesis is that blockchain technology can make international transfers faster and potentially more efficient. Whether XRP ultimately captures significant demand from those use cases remains an open question. The token's long-term valuation will depend on actual adoption, market demand, competition and regulatory developments. What Traders Should Watch Next The latest Santiment data gives traders several areas to monitor. First, they will want to see whether the number of wallets holding at least 1 million XRP continues to increase. Second, exchange inflows and outflows could reveal whether large holders are moving tokens toward or away from trading venues. Third, XRP's trading volume could provide additional information about the strength of current market activity. Finally, price performance will determine whether accumulation is occurring ahead of a potential recovery or during a longer period of weakness. Could Whale Accumulation Become a Bullish Signal? If large XRP wallets continue to grow while the market stabilizes, investors could begin interpreting the trend more positively. A combination of falling prices, rising large-holder balances and improving demand can sometimes indicate that investors with longer time horizons are accumulating. However, confirmation would likely require additional evidence. A sustained price recovery accompanied by continued whale accumulation would provide a stronger signal than wallet growth alone. The Bigger Picture The latest XRP data highlights an important contradiction within the cryptocurrency market. On one side, XRP's market capitalization has fallen approximately 29% over the past three months. On the other, Santiment reports that 32 additional wallets now hold at least 1 million XRP. That divergence suggests that some large holders are behaving differently from the broader market. Rather than abandoning the asset during a period of declining market value, certain investors appear to be building or maintaining significant XRP positions. Whether that strategy proves successful will depend on what happens next. If XRP demand strengthens and the broader crypto market enters a more favorable environment, the growth in large-holder wallets could become an important part of the bullish narrative. If prices continue falling, however, the accumulation may prove premature. For now, the most important development is that large XRP wallets are continuing to expand despite the decline in overall market capitalization. Traders will likely keep watching Santiment's wallet data, exchange flows and XRP price action for signs of whether this accumulation trend is accelerating or beginning to reverse. The data does not guarantee a rally, but it does show that confidence among at least some large XRP holders remains intact hokanews.com – Not Just Crypto News. It's Crypto Culture. Writer @Ethan Ethan Collins is a passionate crypto journalist and blockchain enthusiast, always on the hunt for the latest trends shaking up the digital finance world. 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