Analyst Breaks Down Why There Can’t Be 7 Million XRP Holders

[Ben Graham]

A recent comment from crypto analyst CryptoTank has brought attention to a long-standing misconception about the size of the XRP community. His post focused on the widely quoted figure of seven million XRP wallets and explained why this number does not represent the number of real holders. 

The clarification arrives at a time when XRP is now positioned to start to receive institutional inflows from the recently launched Canary Spot XRP ETF.

Why Wallet Count Does Not Equal Holder Count

CryptoTank noted that nearly 7 million wallets holding XRP does not translate to millions of people owning the asset. He pointed out that he personally maintains roughly 30 wallets, and most committed XRP investors tend to operate between four and six on average. This means a single individual can appear multiple times in on-chain statistics, making the total wallet count an unreliable indicator of how many real participants exist.

The view is simple: the actual number of distinct XRP holders is far lower than many assume, and he believes the true figure sits comfortably below 1 million worldwide. This paints a picture of a community that is still at an early stage compared to other major digital assets. If only a fraction of those seven million addresses belong to unique individuals, then the people who hold XRP today represent a much smaller, far earlier group than estimates imply.

CryptoTank described this group as being “way ahead” of the world, meaning that current holders occupy a position that could become far more valuable once broader participation finally arrives. 

A small holder base means that any meaningful expansion in demand, whether retail or institutional, could have an outsized effect on price because the XRP price has not yet experienced the type of mass inflow seen in previous cycles for Bitcoin and Ethereum.

Institutional Expansion With Spot XRP ETF

This discussion arrives at a significant moment for XRP, particularly with the introduction of the newly launched Spot XRP ETF in the United States. The product widens XRP’s reach beyond its early holder group, allowing institutions and retail traders in regulated markets to also invest in the cryptocurrency.

If the true population of XRP holders is small, the arrival of ETF demand could become a major turning point.  As inflows grow, this new access point may mark the beginning of a shift from an early-holder community to a broader institutional and retail audience.

Speaking of inflows, Canary’s Spot XRP ETF started its first full trading day with $243.05 million in inflows on November 14, according to data from SoSoValue. 

This wasn’t reflected in the price of XRP though, as the cryptocurrency is down alongside the rest of the market. At the time of writing, XRP is trading at $2.26, down by 1.4% in the past 24 hours.

Featured image from Unsplash, chart from TradingView