Analyst Exposes Flawed 7 Million XRP Holder Claim, Reveals True Community Size
A long-held belief about the immense size of the XRP community is being challenged by crypto analyst CryptoTank. He argues that the often-cited figure of seven million XRP wallets dramatically overstates the actual number of unique individuals holding the digital asset, a revelation that carries significant implications, especially with the recent launch of a Spot XRP Exchange Traded Fund (ETF).
Deconstructing the XRP Wallet Count Fallacy
CryptoTank contends that merely counting active XRP wallets provides a misleading picture of the asset's adoption. Highlighting his own practice of managing around 30 wallets, and observing that many dedicated XRP investors typically use four to six, he asserts that a single person can significantly inflate on-chain statistics. This multi-wallet behavior means the widely circulated seven million wallet figure does not correspond to seven million distinct holders. The analyst estimates the true number of unique XRP holders to be well under one million globally, positioning XRP's community in a much earlier developmental stage compared to other prominent cryptocurrencies.
ETF Launch Meets a "Way Ahead" Community
This clarification emerges at a pivotal juncture for XRP, coinciding with the introduction of the Canary Spot XRP ETF in the United States. This new investment vehicle is designed to broaden XRP's accessibility beyond its initial adopter base, enabling institutional and retail investors in regulated markets to engage with the cryptocurrency. A smaller, more concentrated holder base implies that even a modest increase in demand, spurred by the ETF, could trigger a substantial price impact. Unlike Bitcoin and Ethereum, XRP has yet to experience widespread institutional inflows, making the ETF a potential catalyst for significant price movement. Despite the Canary Spot XRP ETF attracting a notable $243.05 million in inflows on its first full trading day (November 14), XRP's price remained largely unaffected, dipping 1.4% to $2.26 within 24 hours, consistent with a broader market downturn.
