The cryptocurrency XRP has reached a new milestone by surpassing five million active accounts, signaling a significant shift in market dynamics and piquing investor interest. This achievement is reported by XRPScan, the leading exploration tool for the XRP Ledger, reflecting a breakthrough after nearly two years of stagnation in the number of holders.
Currently, the number of active addresses stands at 5,000,315, accumulating a total of 99.98 billion tokens, with a fully diluted market value of approximately $56.41 billion.
The distribution of the cryptocurrency holdings sheds light on the market structure. A significant 40.5 billion tokens are locked in custody services, providing stability and predictability to the overall supply. This leaves around 59.46 billion in circulation.
Ripple, the crypto payment firm, retains a substantial amount of these tokens, with approximately 40 billion in custody and around 5 billion in spendable wallets. Moreover, major exchanges like Binance, Uphold, UPbit, and Kraken also hold considerable amounts of XRP, indicating platform interest in participating in the token market.
XRP Controls Inflation Through Token Burn
An important aspect of the distribution is the burning process, which permanently removed over 11 million tokens since its inception. This strategy contributes to a deflationary aspect of the digital currency, potentially impacting its value over time.
Another interesting component is the disparity between the upper and lower ends of the holdings spectrum, with only 85 wallets holding 500 million tokens or more, while the majority, 1,520,402 addresses, have less than 20 units, indicating a broad base of small investors.
The bulk of XRP holdings are concentrated in the middle range, with around 2,409,294 wallets holding between 20 and 500 tokens, totaling 181.99 million. This suggests significant involvement from moderate investors.
Having surpassed the five million active accounts is a pivotal moment in the journey of Ripple’s cryptocurrency. This milestone not only indicates growing confidence and interest in XRP as a digital asset but also symbolizes increased acceptance of the crypto industry within the financial realm. This trend may continue to rise over time, with the potential for further growth in active accounts and active support for XRP.