A well-known cryptocurrency investor, often referred to as a “whale,” has successfully offloaded a significant portion of their XRP holdings, securing a staggering $56.87 million profit.
According to data from Onchain Lens, the investor deposited approximately 26.5 million XRP into Binance, valued at $67.65 million, after holding the assets for over 2.3 years.
The strategic move represents one of the largest realized gains from staking XRP in recent times, further highlighting the potential of long-term crypto investments in volatile markets.
Accumulation at an Optimal Price Point
Blockchain data reveals that the investor accumulated 25.12 million XRP between April 22, 2022, and November 24, 2022.
These acquisitions took place on Binance at an average price of $0.429 per XRP, leading to an initial investment of $10.77 million.
By holding onto the assets for an extended period, the investor capitalized on XRP’s price appreciation, underscoring the effectiveness of patience and strategic timing in cryptocurrency trading.
The decision to retain holdings despite market fluctuations ultimately resulted in a highly profitable exit.
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Leveraging Liquidity Pool Staking for Additional Gains
Beyond merely holding the XRP, the whale employed a liquidity pool staking strategy, pairing XRP with Binance Coin (BNB).
The approach enabled the investor to earn an extra 1.38 million XRP through staking rewards. Liquidity pools play a crucial role in facilitating decentralized trading while offering passive income opportunities for investors.
By leveraging this method, the whale not only benefited from XRP’s price surge but also compounded their overall holdings, maximizing their profit potential.
XRP Market Fluctuations Post Whale Transaction
Despite the whale’s profitable exit, XRP’s price has witnessed a temporary downturn. As of today, XRP is trading at $2.53, marking a 3.45% decrease in the last 24 hours.
However, the token has experienced a robust upward trend over the past week, recording a 24.63% increase in value.
The price movement highlights the inherent volatility of the crypto market, where large transactions, investor sentiment, and macroeconomic factors play crucial roles.
With a circulating supply of 58 billion XRP and a market capitalization of approximately $146.48 billion, XRP continues to maintain its strong position as a leading cryptocurrency.
Increasing XRP Whale Activity and Market Trends
The broader XRP ecosystem has seen heightened whale activity in recent weeks. On-chain data indicates that active XRP addresses surged by 620% as market momentum shifted, with major investors accumulating substantial amounts of XRP.
Meanwhile, another trader has reportedly opened a $250,000 short position on XRP, targeting a potential $5 million profit amid ongoing market debates over the sustainability of the current bull trend.
Additionally, Ripple whales recently accumulated nearly 1 billion XRP tokens within a 24-hour period despite a market-wide selloff, which saw XRP’s price slide by 12%.
As market dynamics continue to evolve, the role of institutional and whale investors in shaping XRP’s trajectory remains a focal point for analysts and traders alike.