Ripple might sell 300 million XRP from its treasury reserves in July
Ripple is gearing up for a significant monthly selling spree of XRP tokens. In July, the company has set aside 300 million XRP tokens worth $145.50 million for this purpose. Every month, Ripple, the largest holder of XRP and the entity responsible for developing the XRP Ledger, sells a portion of its reserves, which increases the circulating supply.
On July 1st, as usual, the company unlocked 1 billion XRP tokens worth $485 million. This was done through the XRP Ledger escrow system using two labeled accounts: ‘Ripple (24)’ and ‘Ripple (25)’.
In addition to the usual 200 million tokens sent to the treasury each month, the alternative account ‘Ripple (35)’ added another 100 million XRP to ‘Ripple (1)’. This suggests that the company may be preparing for a larger sell-off this month.
In terms of the escrow activity in July, ‘Ripple (24)’ initially sent the 200 million XRP tokens for the sell-off to ‘Ripple (1)’. Later, the account sent 300 million tokens to ‘Ripple (12)’ and re-locked the amount in escrow until November 2027.
Similarly, ‘Ripple (25)’ sent the 500 million unlocked tokens to ‘Ripple (13)’ and locked them up until October 2027. All these transactions can be verified on-chain through the block explorer XRP Scan.
Since implementing escrows in 2017, Ripple has consistently reserved no more than 350 million XRP for its monthly sell-offs. There have been instances where the company has held back a portion of the reserves for better sell-off opportunities in the future. However, some months have seen larger sell-offs, but never exceeding 400 million XRP until last month.
In 2024, Ripple sold 226 million, 260 million, 240 million, 200 million, 200 million, and 400 million XRP tokens from January to June, respectively.
It is interesting to note that Ripple introduced the escrow system in 2017 to address investors’ concerns about the lack of transparency in the sell-offs, which had a significant impact on prices. However, despite the increased transparency, the economic effects of supply inflation continue to affect the performance of XRP.
The sell-offs by Ripple directly impact the price of XRP, as they create supply pressure in the spot market. Historically, XRP has experienced price declines when Ripple sells its tokens. Out of the 14 sell-off days this year, only five have had positive price action, while the rest resulted in local crashes. This highlights the importance of monitoring Ripple’s activities.
In the first six months of 2024, XRP had a negative monthly performance in four months.
As of now, XRP is trading at $0.484. Therefore, investors should closely monitor Ripple’s sell-offs in July, as they could potentially slow down an expected bull rally in the market.
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