Key Inisghts:
- XRP price climbed above $1.30 as whales accumulated 60 million tokens.
- XRPL activated fixCleanup3_4_0, preventing unauthorized minting of certain issued tokens.
- Spot XRP ETFs retained $1.81 billion in cumulative net inflows.
XRP price recovered above $1.30 on Nov. 5 as the XRP Ledger activated a security amendment. The update corrected a permission flaw that could allow unauthorized creation of certain issued tokens.
Meanwhile, large XRP wallets reached their highest count this year, according to Santiment. U.S. spot XRP exchange-traded funds also retained approximately $1.81 billion in cumulative net inflows.
The developments coincided with a broader cryptocurrency recovery. However, neither the software update nor the wallet activity establishes what caused XRP’s gains.
XRP Ledger Activates Fix for Unauthorized Token Creation
The XRP Ledger activated the fixCleanup3_4_0 amendment on November 4 at 14:52 UTC, according to XRPLWin. The change took effect at ledger 108,112,129 and corrected a flaw in the network’s delegated permission system. Under the previous rules, an account authorized to destroy issued tokens could create additional tokens under specific transaction conditions.
The issue involved PaymentBurn permissions, which allow approved accounts to burn assets on behalf of issuers. Certain payments could cross a zero-balance boundary and trigger unauthorized issuance. The new rules reject those payments.
The flaw affected issued assets, including stablecoins and Multi-Purpose Tokens, but did not affect the native XRP supply. Developers have not publicly confirmed any exploitation of the vulnerability. The XRPL release notes identify the payment restriction as a correction to the existing authorization rules, rather than a change to token supply policy.
Validator Vote Delayed Network Security Amendment
Developers included the correction in XRP Ledger server version 3.4.0 in September. However, protocol changes require more than 80% support from trusted validators for 14 consecutive days before activation. The first approval period began on October 9, but validator backing briefly dropped below the threshold on October 21.
That interruption restarted the voting period and moved activation into November. Validators subsequently maintained the required majority for two weeks. The earlier attempt lasted 12 days before support dropped.
Beyond the minting fix, the amendment corrected several transaction functions, including automated market maker clawbacks, permissioned trading controls, escrow reserves and signing procedures. The amendment also introduced accounting corrections for proposed vault and lending features.
XRP Price Recovers as Whale Holdings Increase
XRP price traded near $1.32 on Thursday after recovering from last week’s decline to $1.20. The token briefly reached $1.34 during Wednesday’s rally before retreating. Its latest advance followed gains across Bitcoin, Ethereum and other major cryptocurrencies after the US midterm elections.
Crypto analyst Ali Martinez reported that large holders accumulated about 60 million XRP over the preceding week. He also identified withdrawals of roughly 13.24 million XRP from exchanges on November 5.
Santiment counted 2,147 wallets holding at least one million XRP, the highest total this year. The number increased by 28 over ten days. Separately, the network recorded 7,934 new wallets on November 1.
CryptoQuant data showed Binance XRP reserves rising by 280 million tokens between November 3 and November 5. Another measure, the exchange scarcity index, reached its highest level since 2022. Those indicators track different aspects of exchange supply.
Technical levels remain close to the current price. Resistance sits near $1.34 to $1.36, followed by $1.40. A move above those levels could open a test of $1.50. On the downside, traders are watching $1.27 and $1.25. The daily RSI stood around 50, while the MACD showed improving momentum but remained below its zero line.
XRP ETF Flows and Ripple Developments Remain in Focus
US spot XRP ETFs recorded more than $500,000 in net outflows on November 2, followed by two sessions without reported net flows, according to SoSoValue. Cumulative net inflows nevertheless remained near $1.81 billion. October had ended with positive flows, although monthly additions were relatively modest compared with earlier periods.
Ripple also expanded its institutional operations in October. Coinbase broadened RLUSD access across several services, while Robinhood announced plans to integrate the stablecoin through Bitstamp and other channels.
BNY Mellon expanded custody support for XRP and RLUSD. Meanwhile, the Office of the Comptroller of the Currency granted Ripple final approval to establish Ripple National Trust Bank, which will support institutional custody and RLUSD reserve operations.
This article is for informational purposes only and does not constitute financial advice. Cryptocurrency prices are volatile, and market forecasts carry substantial uncertainty.
Kelvin is an experienced crypto journalist with over 6 years of experience backed by an Actuarial Science and English Degree. He has over 10,000 works published under his profile in several major media sites in the crypto, Web 3, and Finance sectors.
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