XRP is experiencing a sharp decline in large wallet holdings and on-chain activity, with recent data showing a steep drop in whale transactions. This shift has raised concerns among crypto enthusiasts and investors about the health of Ripple’s network and its larger implications.

Massive Drop in Whale Transactions

Recent reports from on-chain analytics indicate that XRP transactions of significant size—often associated with millionaire wallets—have practically dried up. Transactions involving at least $1 million worth of XRP have fallen to zero, a stark contrast to previous months when such large movements were relatively common on the network.

This dramatic decrease suggests either a lack of institutional interest or a broader retreat from high-value XRP trades. Among possible reasons could be legal uncertainties surrounding Ripple, alongside stagnating market conditions affecting investor confidence.

What Declining Whale Activity Signals

Experts believe that a halt in these sizeable transactions may point to broader systemic concerns. Whale activity often reflects confidence from high-net-worth individuals and institutions. When these entities pause—or abandon—transactions, it often signifies reduced trust in an asset’s near-term performance.

Additionally, the absence of billion-dollar movements can slow liquidity flows in the market, potentially creating a ripple effect (no pun intended) across other XRP-based services and ecosystems that rely on large-volume trades.

Recent blockchain data shows a dramatic decrease in large-value XRP transactions

A Shift in XRP Market Dynamics

Until recently, Ripple and XRP were frequently seen as staples of high-volume crypto activity. The token’s close association with financial institutions and cross-border payments gave it reputation and credibility in whale circles. However, the latest numbers point to a changing landscape—for now, the millionaire crowd seems to be stepping back.

It’s also worth noting that XRP has been entangled in a lengthy legal battle with the SEC, which could be influencing market behavior. Many investors and institutions remain on the sidelines until there is more regulatory clarity around Ripple’s ongoing litigation and XRP’s classification.

What’s Next for XRP?

While the plunge in large-scale XRP transactions is concerning, it doesn’t necessarily signal long-term doom. Markets often fluctuate based on sentiment, and a resurgence in interest could bring volumes back. For now, investors should monitor upcoming legal milestones and note any signs of institutional re-engagement.

Related: XRP Price: $12M Max Pain for Bears

Until then, the data highlights an important trend: XRP has dropped out of the so-called millionaire club, and large-scale traders are watching from a distance.