Ripples Massive SellOff Remaining 250 Million XRP Dumped from June
Ripple, the developer of the XRP Ledger (XRP) and the largest holder, made a sale of 250 million XRP from the reserves of this month on June 20. The amount has a value of $122.5 million and represents 0.44% of XRP’s capitalization of $27.20 billion at a rate of $0.49 per token. On June 1, the company released 1 billion XRP from the initial distribution, which is locked in monthly escrows until 2027. Ripple then transferred 200 million XRP to its treasury account and locked the remaining 800 million in new escrows. In addition, the ‘Ripple (35)’ account sent an additional 200 million tokens to the sell-off reserves, bringing the total to 400 million XRP. This was the largest sell-off preparation for a single month by the company, and it has now been completely sold out.
The selling activity was carried out through the treasury account, labeled ‘Ripple (1),’ which sent tokens to the unlabeled account ‘rP4X2hTa.’ This action results in an inflation of XRP supply by putting tokens that have never circulated before into circulation for the first time. As of now, the 400 million XRP remains in the ‘rP4X2hTa’ account, which is likely to be distributed to ‘rhWt2bhR’ and other intermediary addresses before reaching cryptocurrency exchanges. The first 150 million XRP from the June dump has already left this intermediary address and entered the market.
It is worth noting that Ripple’s sales have a direct impact on the price of XRP, as they create supply pressure in the spot market. Historically, XRP has experienced a local decline most of the time when Ripple has sold its tokens. Year-to-date, only five of the 14 sell-off days had positive price action: February 5, 11, April 14, May 13, and 20. The other nine days resulted in local declines, highlighting the importance of monitoring the company’s activities. Additionally, XRP’s monthly performance has been negative in three of the first five months of 2024.
As of now, the token is on track for another losing month following one of the largest dumps from Ripple. XRP was trading at $0.488 by press time, down 5.5% from June 1. Therefore, investors should closely monitor Ripple’s sell-offs in the coming months, as they could potentially slow down an expected bull rally in this cycle.
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