On-chain data reveals that there has been a “parabolic” rise in the number of wallets holding onto the native token of the XRP Ledger, XRP, as the value of the cryptocurrency rose more than 310% after Republican presidential candidate Donald Trump won the U.S. elections.
According to data from on-chain analytics firm Sentiment, which used a metric called “Total Amount of Holders” to track the number of addresses on a given blockchain network with a non-zero balance, the surge in XRP wallets started on October 18 and has been ongoing.
The firm’s data shows that over the past two years, there has been a 28% rise in the number of XRP wallets with a non-zero balance, to 5.75 million, while also showing that bitcoin saw a 27% rise to 54.9 million and ether saw a 47% rise to 134.9 million.
An increase in the metric suggests that new investors are entering the market, or that existing investors are creating additional wallets to hold onto their funds — a measure privacy experts recommend.
The rise of XRP since November had several catalysts behind it, including Republican candidate Donald Trump winning the U.S. presidential elections and various spot XRP exchange-traded fund filings, along with Ripple’s launch of its RLUSD stablecoin.
Its price started plunging earlier this month, after the Federal Reserve cut interest rates by 25 basis points and its Chair Jerome Powell suggested a more hawkish stance, suggesting fewer rate cuts would be made next year.
Powell’s comments dampened investor sentiment and affected risk assets across markets, with the stock market’s benchmark index, the S&P 500, plunging by more than 3.5% before recovering, while still being down 1.2% for the week.
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