Major XRP Holders Accumulate Amid Market Downturn

Despite a 30% price drop in February, large XRP investors are increasing holdings, exchange supply is down 57%, and institutional products see new capital inflows.

While cryptocurrency markets continue to face pressure, the XRP ledger is revealing a significant trend: large-scale investors are methodically increasing their holdings. This accumulation coincides with fresh capital entering the token through institutional investment products. This activity raises questions about the underlying strategy, especially as XRP's price continues to decline.

Institutional Inflows and Whale Activity

Data from the blockchain provides clear evidence of strategic positioning. Since the beginning of January 2026, wallets holding over one billion XRP have consistently grown their collective balance, expanding from 23.35 billion to 23.49 billion tokens. This suggests that major market participants are using the period of price weakness to build positions.

Supporting this institutional interest, U.S. spot ETFs recorded net inflows of $3.09 million on February 25. These developments are occurring while XRP trades approximately 63% below its all-time high of $3.65, which was reached in July 2025.

Supply Dynamics and Network Sentiment

A notable shift is occurring in market liquidity. The volume of XRP available for trading on centralized exchanges has plunged by 57% since the start of 2025. This sharp reduction typically indicates that investors are moving their assets into long-term storage, a common strategy when anticipating a future price recovery.

The profit-and-loss situation across the network presents a mixed picture. Although recent buyers are currently in a profitable position, a substantial number of long-term holders are facing unrealized losses. Meanwhile, Ripple is advancing commercial adoption, with 40% of its more than 300 institutional partners now using XRP for direct transaction settlement.

Ripple's Evolving Strategy and Current Performance

Ripple is increasingly framing its underlying technology as enterprise-grade infrastructure for payments. The company's current focus targets two expanding sectors: stablecoins and the tokenization of real-world assets. The launch of its non-volatile bridge currency, Ripple USD (RLUSD), in late 2024, represents a key strategic component of this vision.

Despite the accumulation trends, February has been a historically weak month for XRP's price. The first three weeks saw a decline exceeding 30%, a performance far worse than the long-term average February loss of 3%. Trading around $1.45, XRP's market capitalization stands at approximately $88.5 billion, with 61 billion tokens in circulation.