XRP Social Dominance Grows As Whales Continue To Hoard

Jed McCaleb sold about $400 million worth of XRP in 2020.

XRP is back in the spotlight, reflected in a surge in social dominance, a network metric used to measure mentions of an asset on social media platforms like Twitter. This is generally considered a positive sign for the price.

According to according to Santiment, XRP has seen an increase in its social dominance. Santiment builds this metric based on data collected from different social media platforms:

XRPNetwork witnessed an upsurge of discussion in the early hours of Monday. Generally, when traders increase the amount of discussion about an asset while its price is declining, it increases the likelihood that the price increase will compensate FUD and greedy shortists.

Social dominance of XRP

Social dominance of XRP

In addition, also referring to the Santiment data, the cryptanalyst Ali reports that Whales have purchased a whopping 1.1 billion XRP since February, worth around $570 million.

XRP whales have been buying regularly since the beginning of 2023, often using periods of decline or consolidation to buy.

Whales bought 360 million XRP worth $170 million when the price fell 12% at the end of June. XRP whales are known to accumulate over long periods of time, often coinciding with XRP price increases. A similar circumstance that preceded the big XRP/USD rally at the end of 2020 is considered a historical precedent.

Similarly, the recent wave of XRP accumulation by whales has coincided with an increase in the price of XRP. In March, XRP price hit a high of $0.545.

Growth continued into the second quarter of 2023, and according to Messari, XRP’s circulating market capitalization has grown by 42.5% year-to-date, mainly due to its price growth in the first quarter of 2023. After falling in early May, the price of XRP now remains close to its yearly high.

The XRP Ledger has shown impressive network activity in the last quarter. On May 28, 2023, about 523,000 addresses made transactions, nearly 11 times the average per day in the second quarter. This is the second largest day of targeted activity in its history.

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