- Over 500M XRP moved within 24 hrs, signaling market activity and potential volatility.
- Active addresses peaked with XRP surging, showing a link between usage and value.
- Whale transfers to exchanges show selling pressure, raising concerns about stability.
Ripple’s XRP network has experienced whale transactions, with over 500 million XRP moved within 24 hours, as reported by Whale Alert. One of the largest transactions was unlocking 400 million XRP worth $1.14 billion on February 2, 2025, at 14:35 UTC. The sender and receiver were identical, suggesting this was a planned escrow release by Ripple. These massive unlocks often impact liquidity and market sentiment, prompting concerns among XRP holders.
On February 3, 2025, additional whale activity was observed, with 60 million XRP worth $134.9 million sent to Binance at 04:08 UTC. Shortly after, at 07:30 UTC, another 50 million XRP valued at $119.8 million was transferred to Binance from the same wallet. These transactions suggest potential liquidations by large holders, which could introduce downward pressure on XRP’s price.
Later, at 08:44 UTC, 29.53 million XRP worth $68.36 million was transferred to Coinbase, possibly for trading purposes. These concentrated high-value transactions raise critical questions: Could this activity further destabilize XRP’s price stability?
Active Addresses Correlate with Price Spikes
Data from Santiment highlights a strong relationship between active XRP addresses and price movements. In late November 2024, active addresses peaked at 174,000, coinciding with XRP’s price surging above $2.652. This increase indicated participation and trading activity, fueling market momentum.
Following the November peak, price and active addresses declined, with XRP finding support below $2.60. However, a renewed surge in active addresses in January 2025 saw the metric reach 114,000, driving XRP’s recovery above $3.00. This demonstrates how increased network activity directly impacts price trends, offering insight into investor behavior.
These on-chain dynamics align with recent whale transactions, reflecting the interconnectedness of large movements and broader market activity.
Related: XRP’s Bullish Breakout: Will the Momentum Continue?
Implications for XRP Market Dynamics
The combination of whale transactions and network activity suggests Ripple’s XRP faces both opportunities and challenges. Large-scale XRP transfers to major exchanges like Binance and Coinbase indicate heightened trading, potentially tied to strategic liquidation efforts. While such activity showcases XRP’s liquidity, it raises concerns about market volatility and investor confidence.
Understanding these transactions and on-chain metrics is crucial for anticipating future market behavior. Ripple’s transparency and the community’s vigilance remain critical as these developments unfold.
