XRP is one of the most talked-about cryptocurrencies, but few people understand how small its true holder base is. Even though there are 6.4 million XRP wallets, that does not mean there are 6.4 million people holding XRP. Many users, especially experienced ones, hold multiple wallets for different purposes like trading, storage, and security.
In fact, a large number of these wallets are inactive, unfunded, or belong to exchanges like Binance and Uphold. Others may contain only a small amount of XRP, often referred to as “dust” wallets. Based on blockchain data and AI analysis, it is estimated that only about 30 to 40 percent of these wallets are actually used by individual holders.
As explained by Edo Farina, this means that the real number of people who hold XRP is much smaller—somewhere between 1.5 and 2 million worldwide. That’s less than 0.03 percent of the global population. To put it simply, fewer than one in every 4,000 people on the planet currently holds XRP.
So, how much XRP do you need to be considered a top holder? According to the latest data, owning just 2,500 XRP places you in the top 10 percent of all XRP wallets. At current market prices, that’s about $5,000. While it’s no longer as easy as it once was, it’s still an amount within reach for many investors.
There’s a common belief that if XRP ever reaches high values—say $1,000—the elites or governments won’t allow regular people to profit. But when you look at the numbers, the situation is quite different.
Even if 2.5 million wallets each held 250 XRP and XRP hit $1,000, each person would make $250,000. That’s a great return, but not enough to disrupt global financial systems or draw serious attention from regulators. And realistically, most people are unlikely to hold XRP until it reaches those high prices. Many will cash out early—at $10, $50, or $100.
Many cryptocurrency projects such as Aave, dYdX, Jupiter, and Hyperliquid have recently announced token buyback mechanisms.
Traditional stock markets inspire the token buyback strategy. But does this strategy help crypto projects build a sustainable economic model and contribute to increasing the price of their tokens?
The Booming of Crypto Projects’ Token Buyback Programs
Token buybacks occur when crypto projects repurchase their tokens from the market. These repurchased tokens can be held as reserves or even burned. In theory, buybacks reduce circulating supply, creating scarcity, which may drive up token prices. Although not a new strategy, BeInCrypto has observed that this trend is rapidly expanding.
For example, in early March 2025, the lending protocol Aave (AAVE) announced the implementation of a new Aavenomics. Aave will repurchase tokens to reduce supply and shift from staking rewards to a more sustainable liquidity model. This included a weekly AAVE token buyback worth $1 million for six months, funded by protocol fees.
In an ideal scenario, this buyback plan could reach a total value of $100 million (3% of the circulating supply).
“We consider it the most important proposal in our history, feel free to have a read and provide feedback,” said Marc Zeller, founder of the Aave Chan Initiative (ACI).
Also in March, the decentralized exchange (DEX) dYdX approved “Proposal #225” to buy back DYDX tokens. The protocol will use platform revenue for the buyback.
Other crypto projects like Hyperliquid (HYPE) and Jupiter (JUP) have similar plans. Estimates suggest Hyperliquid will repurchase $600 million worth of tokens annually, using 50-100% of transaction fees. This protocol dominates decentralized finance (DeFi) despite the market downturn.
These are just a few of the most typical crypto projects. Many other projects, including Gnosis, Gains Network, and Arbitrum, employ similar strategies. So, could this reshape the current cryptocurrency market?
What’s Driving This Token Buyback Trend?
Discussing this buyback strategy, an X (formerly Twitter) user commented:
“Buybacks create steady demand and reduce circulating supply, which can stabilize or even increase token prices.” commented Capitanike.
The fundamental economic principle of supply and demand is the key driver. By reducing circulating supply, crypto projects aim to increase token scarcity, which could push prices higher. According to SolanaFloor, projects with token buyback programs outperformed those without buybacks by 46.67% in 2024 (-0.6% vs. -47.15% YTD).
Performance of Projects with Token Buyback Programs Source: SolanaFloor
Secondly, the buyback can signal strong financial health for crypto projects. This is particularly effective in reassuring investors amid market volatility.
Thirdly, unlike the token burn strategy, many projects (such as AAVE and Gains Network) redistribute repurchased tokens to stakers or holders, aligning incentives. This approach could indicate the maturity of a project’s tokenomics model over time.
However, token buybacks are not without weaknesses. As this strategy becomes more widespread, regulators like the SEC may scrutinize it for potential manipulation or illicit activities.
Additionally, an improperly calculated buyback strategy could overly reduce token supply. If a project fails to balance new issuance or staking rewards, it might suffer from decreased trading volume. Moreover, buybacks could potentially mask financial weaknesses.
“What’s more plausible, in our opinion, is that these buybacks serve as proof that the projects raised too much during their ICO, are failing to develop anything useful, and don’t know what to do with their cash balances…” TokenData Research report.
The recent surge in crypto projects adopting token buybacks marks a significant evolution in tokenomics. While buybacks can enhance price stability, investor confidence, and ecosystem growth, they also carry manipulation risks and regulatory problems.
The global cryptocurrency market cap stands at $3.07 trillion, down 1% over the past 24 hours. Bitcoin (BTC) is holding steady near $94,880, while altcoins like LTC, XRP, AVAX, and LINK have recorded losses.
As for Pi Coin, the altcoin has struggled since peaking near $3 in February, with its price action remaining largely bearish. Pi Coin has recorded a 12% monthly decline despite a few short-lived rebounds.
Will Pi Coin Price Rise in May?
However, as May approaches, there are signs that Pi Coin could be gearing up for a recovery. Pi is currently trading at $0.6249, showing a 7% rise, and with a market cap now over $4 billion.
While the broader crypto market sentiment shows improvement, Pi’s rise is still being limited by the absence of key catalysts, such as major exchange listings or significant mainnet upgrades. evel.
On the technical front, the RSI has steadily improved from its April lows, showing growing accumulation, although at a slower pace. Overall, traders appear cautiously optimistic about Pi Coin’s future, given its historic volatility and the relatively low liquidity on exchanges. Additionally, 7.8 million Pi tokens are set to be unlocked today, which could impact the price.
Is $1.70 Incoming?
Despite all these challenges, analysts like Dr. Altcoin believe that Pi Coin’s price could rise to $1.70 by mid-May. The expected price increase is based on upcoming events, particularly the Consensus Summit scheduled for May 14–16, where Dr. Nicholas Kokkalis, the founder of Pi Network, is expected to give a speech.
Analyst Andrew Griffiths shared that Pi Coin is currently stuck between the bulls and bears around the 0.6 level. If the trend continues upwards and breaks above 0.75-0.78, it could reach 1. However, if the price drops below 0.55, it could signal a bearish trend, possibly heading towards 0.288.
The post Pi Coin Price Prediction: Is $1.70 Coming After 7% Rise? appeared first on Coinpedia Fintech News
The global cryptocurrency market cap stands at $3.07 trillion, down 1% over the past 24 hours. Bitcoin (BTC) is holding steady near $94,880, while altcoins like LTC, XRP, AVAX, and LINK have recorded losses. As for Pi Coin, the altcoin has struggled since peaking near $3 in February, with its price action remaining largely bearish. …
