Ripple offloads 150 million XRP from June reserves causing price pressure
Ripple, the developer of the XRP Ledger (XRP) and the largest holder of the digital asset, recently sold 150 million XRP from its reserves on June 7. This sale amounted to $78 million, accounting for 0.25% of XRP’s total market capitalization of $29.25 billion, with each token priced at $0.52.
On June 1, the company released 1 billion XRP from its initial distribution, which is locked in monthly escrows until 2027. Following this, Ripple transferred 200 million XRP to its treasury account and locked the remaining 800 million in new escrows. Additionally, an additional 200 million tokens were sent to the sell-off reserves by the ‘Ripple (35)’ account, bringing the total to 400 million XRP.
The selling activity was initiated by the treasury account, labeled as ‘Ripple (1),’ which transferred tokens to the unlabeled account ‘rP4X2hTa.’ This action results in an increase in XRP supply, as tokens that were previously not in circulation are introduced for the first time.
As of now, the tokens remain in the ‘rP4X2hTa’ account, likely to be distributed to ‘rhWt2bhR’ and other intermediary addresses before being sent to cryptocurrency exchanges, as seen in previous months.
The impact of Ripple’s sales on the price of XRP is significant, as they create supply pressure in the market. Historically, XRP has experienced price declines whenever Ripple sold its tokens. Out of the 12 sell-off days this year, only five resulted in positive price action, highlighting the importance of monitoring the company’s activities. XRP had negative monthly performance in three of the first five months of 2024.
Currently, XRP is trading at $0.523, with an increasing supply pressure affecting its spot price. Investors are advised to keep a close watch on Ripple’s sell-offs in June, as they could potentially affect the expected bullish trend in the market.
Disclaimer: The information provided in this article should not be considered as investment advice. Investing in digital assets carries risks, and investors should be cautious while making investment decisions.