- The new ranking highlights how XRP holdings are distributed, offering insights into market structure and investor diversity.
- Mid-tier participants like Dolphins and Fish play a vital role in creating market depth through frequent, low-volume transactions.
- The ranking may encourage smaller holders to invest more, but it also risks fostering rivalry and short-term trading behavior.
A new ranking system categorizing XRP holders has emerged, offering an insightful way to understand participation within the cryptocurrency community. The system ranks users according to the quantity of XRP possessed by the investors; they are classified into nine different categories. Not only does such a classification signal levels of investment but also it gives an idea of the community’s organisation and significance in the market.
The XRP Ladder of Holders and its Purpose
The highest rank in the ranking system is the “Big Whales” who hold over 100,000 XRP, signifying the biggest stake within the XRP community. Following these are called “Whales,” and “Sharks” holding over +50,000 XRP and +10,000 XRP. Big whales and Whales possess substantial XRP in their possession; therefore, their transactions may have tremendous effects on the asset’s liquidity and price.
Moving on to the mid-range participants, which include the ‘Dolphins’, ‘Fish,’ with XRP holdings of +5000 and +1000. Mid-tier participants such as the Dolphins and Fish make up a significant percentage of the market players. They participate in frequent low volume transactions that collectively contribute to market depth.
Smaller investors are divided into additional tiers: There are “Octopus,“Crabs, and “Shrimps” with investments ranging +1000 XRP, +500 XRP and +200 XRP. Lastly, the least active participants with possession of 1 to 99 XRP are referred to as “Worms.”Newcomers investing in cryptocurrencies are usually classified as small holders. Their participation assists in growing the community, and from this perspective, their involvement introduces XRPs to the general public.
The new system aims at offering clear direction and encouraging active participation throughout the communities through a well-laid down system of determining the extent of participation. It also provides an insight of how the wealth is distributed among the users of the XRP. According to the stakeholders, this classification means that investors realize their role within the larger structure as they are motivated towards contributing and investing in more projects.
Market Implications with the ones Benefiting
Market players point out that the trading activity may be affected as players try to improve their rankings. It also drives increased purchases to climb tiers, which put pressure on the liquidity and volatility of XRP. Such a ranking system makes the process transparent but critics argue that it may foster rivalry among the various subgroups within this community.
It may also be designed for new customers who feel like they lack the higher status they desire in society. However, critics argue against the excessive focus on tiers, suggesting that investment goals should prioritize long-term outcomes rather than conforming to socially constructed hierarchies.
