1 Underrated Reason to Buy XRP With $1,000 and Hold It for 5 Years or More

Crypto assets hold a price floor when the group of people most likely to sell decide on average that it's a better idea to hold and wait out the tough times.

That investor psychology is a big part of why XRP (CRYPTO: XRP) still attracts committed coinholders after years of dramatic price swings, like its decline of 46% over the last six months. In fact, one perpetually underrated reason to consider investing $1,000 into the coin and holding it for five years or more is the holder base itself.

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A stubborn holder base can be a huge asset

XRP's holders are well known in the crypto sector as being some of the most patient, most dedicated, and most vocal about the asset they hold.

They're responsible for maintaining and participating in countless online discussions on social media, as well as a handful of communities dedicated solely to investment in XRP. Having investors who are consistently excited to hold the asset, and consistently happy to evangelize about it, is an important tailwind, and it's one factor that usually doesn't get mentioned as being part of the investment thesis for buying and holding XRP -- but it should be getting more attention.

For XRP, ownership is widely distributed rather than being concentrated in a handful of whale wallets. There are more than 7.5 million active wallet addresses with substantial balances of the coin, and a long tail with smaller balances. So the decisions to sell large quantities of the coin, thereby forcing down its price, are spread across many different people with different time horizons, different investment objectives, and different classes of investor as well.

What's more, even after the coin's recent decline, the share of wallets holding at least 1 million XRP has started climbing again in early 2026, adding dozens of new "millionaire" addresses -- and that's a good sign.

In other words, the data seem to match the idea that some holders are prepared to wait for their investment thesis to play out, and that likely supports the prevailing price level over time, which is one more reason to consider buying it with $1,000.

A community can't win alone

So now that you've heard the good news about XRP and its stalwart group of holders, it's time to zoom out and look at the full context.

Loyal holders can make a coin easier to hold, but they probably can't create enduring demand. XRP's chain needs usage that brings in new buyers for the coin without depending on sentiment alone. And the only thing that can accomplish that goal is if the chain offers real utility to its target users in financial institutions.

On that front Ripple, XRP's issuer, is hard at work, constantly adding new features to the chain, expanding its distribution into new jurisdictions, and recruiting new users for pilot programs. Those efforts carry the main part of the burden of making XRP into a success for investors -- but the XRP community is certainly a boon in carrying the load, too.

Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends XRP. The Motley Fool has a disclosure policy.