Ripples treasury reserves could potentially sell 300 million XRP in July
Ripple has readied its treasury for a significant monthly sale of XRP, reserving 300 million tokens valued at $145.50 million for July. This move is part of its routine practice as the primary holder of XRP and the driving force behind the XRP Ledger’s development, aiming to manage its circulating supply through regular sales.
On July 1, Ripple unlocked 1 billion XRP, valued at $485 million, using the XRP Ledger escrow system from two designated accounts: ‘Ripple (24)’ and ‘Ripple (25)’.
In addition to the typical monthly transfer of 200 million tokens to its treasury, an extra 100 million XRP was sent from the alternative account ‘Ripple (35)’ to ‘Ripple (1)’. This suggests a potential increase in the volume of XRP being prepared for sale this month.
The transaction details from ‘Ripple (24)’ indicate that 200 million XRP initially earmarked for July were transferred to ‘Ripple (1)’. Later, 300 million tokens were moved to ‘Ripple (12)’, with the amount locked in escrow until November 2027.
Simultaneously, ‘Ripple (25)’ sent 500 million unlocked tokens to ‘Ripple (13)’, where they will remain locked until October 2027. All these transactions are verifiable on-chain through the XRP Scan block explorer.
Since implementing its escrow system in 2017, Ripple has consistently reserved up to 350 million XRP per month for sale. Some months have seen the company retain part of its reserves, waiting for more favorable market conditions, while others have witnessed larger sales, with the highest monthly figure prior to last month reaching 400 million XRP.
In 2024, Ripple’s monthly sales volumes were 226 million, 260 million, 240 million, 200 million, 200 million, and 400 million from January to June, respectively.
The introduction of the escrow system was prompted by investor concerns over transparency during Ripple’s significant sales, which historically impacted XRP prices. Despite improvements in transparency, the inflationary effect on supply continues to influence XRP’s market performance.
The direct influence of Ripple’s sales on XRP’s price is evident, often causing downward pressure on the spot market. In 2024, XRP experienced negative monthly performance in four out of the first six months, underscoring the importance of monitoring Ripple’s activities.
As of the latest update, XRP is trading at $0.484. Investors are advised to closely follow Ripple’s sales in July, as they could potentially dampen anticipated bullish market trends during this cycle.
**Disclaimer:** The information presented here does not constitute investment advice. Investment in cryptocurrencies carries risks, and investors should exercise caution and conduct thorough research before making decisions.