Large Quantity of Inactive XRP Wallets Contain Nearly 10.7 Million XRP Coins - What Is the Significance?
In the world of cryptocurrency, the XRP Ledger network has been a topic of interest due to the significant number of inactive wallets holding XRP tokens. According to recent data, there are approximately 1.13 million XRPL wallets that currently hold 16.7 million XRP in an inactive state, equating to over $51.7 million based on the current XRP price.
Interestingly, a substantial portion of these inactive wallets hold 10 XRP each, making up around 8.4% of the total wallets. Combined, these 592,818 wallets hold approximately 5.93 million XRP, worth around $18.5 million based on the current XRP price.
These dormant assets have sparked discussions about their potential impact on the XRP market, particularly in light of Dr. Artur Kirjakulov's findings. Some market observers believe that the circulating supply of XRP may be smaller than assumed due to the high number of inactive wallets.
The suspicion that California Bill AB 1052 might also affect inactive XRPL wallets was raised by a market participant reacting to Dr. Kirjakulov's disclosure. The bill, which allows the state to expropriate assets residing on centralized exchanges if they have been inactive for more than three years and are considered unclaimed property, has created a wave of speculation.
However, it's important to note that this law does not apply to on-chain wallets like XRPL, so it's unclear whether inactive XRPL wallets will be impacted.
When the XRP Ledger was launched in 2013, its initial developers set a rule that every wallet created must have a minimum balance of 20 XRP. This rule was later changed in September 2021, when the XRPL community voted to lower the minimum balance requirement from 20 XRP to 10 XRP.
Despite the potential for a supply shock in XRP being speculative at this point, the high number of inactive wallets has led to speculation that they may be initial reserve balances required to open an XRPL account. Owners of inactive XRPL wallets can still reclaim their assets at any time by verifying their identity.
In early December 2024, after the price of XRP broke the $2 psychological level, the XRPL validators agreed to lower the reserve requirement to just 1 XRP, a 90% cut. This move was aimed at making it easier for new users to interact with the XRP Ledger network.
Meanwhile, the latest data from XRPL Stats shows that holdings of 10 XRP are the most common on the network. This trend suggests that many users are choosing to maintain a minimal balance, perhaps due to the low transaction costs associated with the XRP Ledger.
In conclusion, the discussion surrounding the potential impact of inactive XRPL wallets on the XRP market and the applicability of California Bill AB 1052 to these wallets continues to evolve. As more information becomes available, it will be interesting to see how this unfolds in the coming months.
