SEC Token Proposal Sparks Massive XRP Whale Accumulation Near $1 Level

Market Recovery Amid Institutional Repositioning

After an intense selloff from August 10-14 that saw cryptocurrency funds face record outflows of $389.7 million, market sentiment shifted sharply on August 18. Spot Bitcoin ETFs rebounded strongly, attracting $189.31 million in net inflows in a single trading session, while Ethereum ETFs recorded $71.47 million. U.S. spot XRP ETFs showed more modest activity with $5.81 million in inflows, yet on-chain behavior reveals a different dynamic. XRP maintained a gain of 1.23% and consolidated firmly around its crucial $1.0052 support level as the broader cryptocurrency market stabilized following what had been a challenging week.

Whale Accumulation and Regulatory Catalyst

The stabilization is being driven not by retail sentiment but by aggressive institutional buying at depressed levels. Large XRP holders accumulated over 642 million tokens throughout August, with the most intense purchasing occurring near the psychological $1 level. During the first week alone, wallets holding between 1 million and 10 million XRP added 380 million coins to their positions. This accumulation continued mid-month, with investors purchasing an additional 72 million tokens on August 13-14 and absorbing another 190 million tokens on August 16-17. The intensity is reflected in on-chain activity: large XRPL transactions exceeding $1 million surged 280% on August 17-18, reaching over 38 transactions per day as active addresses increased substantially.

This whale activity coincides with a fundamental catalyst from Washington. According to the U.S. Securities and Exchange Commission, the agency published a historic proposal aimed at simplifying token registration procedures. The proposal has been linked directly to the Senate’s planned procedural vote on the CLARITY Act, scheduled for September 15. While representing potential progress for crypto regulation, the legislation faces headwinds: passage probability by year-end has declined to 20%, down significantly from market estimates exceeding 80% several months earlier.

Ripple’s Strategic Capital Raise and Asian Expansion

Beyond market dynamics, Ripple itself is executing major institutional moves. The company’s brokerage subsidiary, Ripple Prime, completed its inaugural private placement of $275 million in unsecured bonds due in 2031, carrying an 8.25% coupon and receiving a BBB investment-grade rating from KBRA. Investment bank Piper Sandler served as the lead underwriter. Combined with a May debt agreement, Ripple’s total debt financing over the past three months has reached $475 million through Hidden Road, the infrastructure company acquired in 2025 for $1.25 billion. The company further expanded its Asia-Pacific payments presence by partnering with South Korea’s Jeonbuk Bank to introduce instant settlement capabilities through Ripple Payments.

Ripple’s RLUSD stablecoin continues demonstrating institutional maturity through robust redemption activity. A $35.7 million burn on the XRPL resulted in a 99% monthly burn rate, indicating strong custody dynamics. Over a 30-day period, $449.3 million in RLUSD was issued on the XRPL but nearly all was redeemed, with only $177.3 million burned on Ethereum in comparison. The total RLUSD supply stands at $1.757 billion split nearly evenly between the two blockchains.

The convergence of whale accumulation, regulatory progress signals, and Ripple’s substantial institutional capital raise suggests major market players are positioning for sustained holding rather than near-term profit-taking, potentially setting up XRP for significant market inflection during this critical regulatory window.

Source: SEC, via U.Today. Not financial advice.