XRP is among the most well-established and widely held cryptocurrencies in the market. Introduced in June 2012 by David Schwartz, Jed McCaleb, and Arthur Britto, XRP has maintained a sustained interest from investors and developers across numerous bull and bear markets on account of its potential for high returns. People mistakenly call XRP “Ripple”, and this confusion is rooted in XRP’s early history. Previously, XRP was called Ripple because the original open-source project was titled Ripple.
With growing use cases and fundamentals, XRP is a compelling option for those seeking to obtain exposure to the dynamic digital asset economy. Reforms that could spur the economy, ETF market push, and more practical use in everyday situations could recast XRP’s place in the market, so the XRP news today could influence tomorrow’s price action. As institutional interest deepens and the infrastructure around XRP matures, investors are increasingly viewing it not just as a speculative asset, but as a strategic component of a diversified crypto portfolio.
Who exactly owns XRP, and how do their holdings influence market stability? Ownership concentration affects both investor confidence and the long-term sustainability of the XRP ecosystem, as it can influence liquidity, price firmness, and perceptions of decentralization.
Ripple Labs Holds The Lion’s Share Of The Token Supply
Ripple Labs, the blockchain technology company that developed the XRP Ledger and its native cryptocurrency, XRP, is by far the largest owner, with estimates placing the control at around 42% of the total 100 billion supply. It can’t be mined because it’s centrally controlled. The founders kept 20 billion XRP for themselves and dispensed the remaining 80 billion XRP to Ripple Labs to fund and develop the company’s commercial vision for the network and token.
Ripple’s escrow system releases up to one billion XRP monthly using a smart contract mechanism to avoid inundating the market, and although the process is structured and predictable, it still depends on individual transactions to spark visibility on the XRP Ledger. If Ripple or another party doesn’t use all the XRP released, the excess is put back into escrow contracts to be released in future months.
Chris Larsen Controls An Estimated 2.5 Billion XRP
Chris Larsen is the executive chairman of Ripple’s board of directors. Before Ripple, he co-founded and served as CEO of Prosper, a peer-to-peer lending marketplace, and E-Loan, one of the first online mortgage lending service providers. Larsen owns approximately 2.5 billion XRP, valued at an estimated $7 billion. He has at least eight distinct crypto wallets, each with varying balances. Four of these wallets have reportedly never made outbound transfers since the initial allocation in 2013.
Others have been active. In late July, 50 million XRP left a wallet address associated with Chris Larsen, impacting market sentiment and raising regulatory scrutiny. Two wallets received a combined 30 million XRP, likely for liquidity or sales purposes. One wallet received 10 million XRP, which is believed to be exchange-linked, and the remaining XRP was split across two newly created addresses.
Chris Larsen’s holdings stand for 4.6% of the entire XRP market cap, which positions him as a key stakeholder in the long-term direction of the XRP ecosystem, with the potential to support network growth via funding, advocacy, and strategic alignment with Ripple’s vision. Still, it brings into question the validity of decentralization. Concentrated holdings can stabilize or destabilize the market depending on how they’re managed.
A Substantial Amount Of XRP Is Held On Exchanges
The amount of XRP held on exchanges often fluctuates as users deposit cryptocurrency for trading or withdraw it for storage in private wallets. Binance.com is one of the largest custodians of XRP, holding over 2 billion XRP in wallets tied to the exchange. Attention must be paid to the fact that these assets belong to customers, not the exchange. The sizable holdings of XRP illustrate its substantial trading volume and popularity, reinforcing its status as one of the most actively traded digital assets in the market.
High levels of XRP on cryptocurrency exchanges translate into more liquidity, namely lower costs of trading and an ability to move more easily in and out of assets. Withdrawals involve sending XRP off-platform. When traders withdraw their XRP, it signals a bullish sentiment, so prices are expected to rise in the future. To the contrary, the influx of liquidity into exchanges suggests imminent selling pressure, resulting in downward force on prices.
Whales Have At Least 1 Million XRP
Large institutional investors, the whales, hold more than one million XRP, the highest level in the cryptocurrency’s history. Many whale wallets are linked to funds, corporations, and high-net-worth individuals who can cause large price movements when they suddenly become active. Large holders can turn market sentiment in their favor by spreading FUD (fear, uncertainty, and doubt) via news outlets, social media discussions, and other means to disseminate false information.
The growth in the number of whale wallets marks a transition from retail-driven speculation to strategic, long-term accumulation to building wealth. This is rooted in the belief in XRP’s long-term growth potential. Undeterred by price volatility, Ripple has established firm partnerships and collaborations with companies like Mastercard, Bank of America, etc. When Ripple is done fighting the SEC, it will attract more institutional investors.
The Takeaway
A very small number of entities hold a disproportionately large percentage of the total supply of XRP, and this is in contrast to more decentralized cryptocurrencies like Bitcoin, where ownership is more widely distributed. Ultimately, understanding who holds the most XRP isn’t just a matter of curiosity. When a small number of wallets hold so much of a digital asset, their actions can have a dramatic impact on its price.
If a major holder decides to sell a portion of their XRP, the effects ripple throughout the market, creating immediate selling pressure, market sentiment shift, and drawing regulatory attention. Proponents argue that large holdings instill confidence in other investors because they demonstrate experienced entities believe in Ripple Labs’ long-term prospects and stability. That said, there are valid decentralization concerns, and the potential for market manipulation is real.
All in all, XRP’s ownership structure is both a blessing and a curse.