XRP Whales Expand Holdings by 2.8% as Retail Wallets Retreat; ETFs Surge with $5M Inflow

XRP's bullish momentum is being fueled by heavyweight accumulation, with on-chain data from Santiment revealing that wallets holding between 100,000 and 100 million XRP have boosted their combined balances by 2.8% over the past five weeks. Simultaneously, retail wallets holding less than 0.01 XRP have dumped 5.2% of their positions, a classic whale-versus-retail divergence that signals smart money is doubling down. Adding fuel to the fire, XRP-linked exchange-traded funds (ETFs) saw a sharp $5 million inflow, underscoring growing institutional appetite for the digital asset—even as technical upgrades on the XRP Ledger continue to enhance its scalability and utility for cross-border payments. This institutional stamp of approval, combined with whale conviction, sets the stage for a potential breakout as broader crypto markets realign.

Large holders accumulate as price rebounds

The data indicates a clear divergence between the strategies of major investors and smaller retail participants. As XRP traded within a relatively narrow range between $1.05 and $1.12, the larger wallets seized the opportunity to buy while prices were low, effectively “buying the dip.”

XRP recently rose above the $1.16 level, marking a gain of over 3% in the past week, according to CoinGecko. This price recovery came as smaller holders were exiting the market, while large investors were increasing their exposure.

On-chain data reveals that whales stepped up accumulation during XRP’s recent consolidation, even as smaller traders scaled back their positions.

Historically, XRP’s price action has often mirrored the behavior of these large holders rather than the smallest participants, Santiment noted. While the recent accumulation trend among whales may be seen as a bullish indicator, analysts maintain that macroeconomic conditions, ETF flows, and overall crypto market sentiment remain more significant in determining XRP’s next move.

ETF inflows signal renewed interest

In a further sign of institutional confidence, spot ETFs for XRP recorded substantial net inflows in recent days. On July 21, these funds brought in $5.09 million, following $2.27 million in net inflows on July 20 and $6.10 million on July 16. This positive trend came after a brief period of outflows at the beginning of the month, highlighting renewed interest from institutional investors.

Technical upgrades on the XRP Ledger

Beyond investor activity, the XRP network is poised for significant technical enhancements. In the coming weeks, validators are expected to vote on a major upgrade package for the XRP Ledger, Ripple’s decentralized blockchain platform.

The proposed amendments include the introduction of batch transactions, which would allow multiple transfers to be processed simultaneously, and confidential transfers, designed to strengthen on-chain privacy. Other improvements are targeted at optimizing the Multi-Purpose Token (MPT) standard of the XRP Ledger.

Mini dictionary: XRP Ledger (XRPL), developed by Ripple, is a decentralized blockchain platform used for fast and low-cost digital asset transfers. Validators are entities that participate in the consensus process to validate transactions and amendments on the XRPL network.

Santiment highlighted that while whale accumulation tends to precede periods of price strength, there is no guarantee of continued gains. Market observers are watching upcoming developments on both the trading and technical fronts to gauge the momentum behind XRP’s ongoing rally.