Ripples Substantial Selloff 250 Million XRP from June Completely Divested
Ripple, the developer and primary holder of XRP, has sold 250 million XRP from its reserves on June 20. This amounts to $122.5 million, which represents 0.44% of XRP’s total market capitalization of $27.20 billion at a price of $0.49 per token.
On June 1, the company released 1 billion XRP from its initial distribution, which was previously 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.
Additionally, the account known as “Ripple (35)” 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 by the company for a single month, and all of it has now been sold.
As usual, the selling activity was conducted by the treasury account labeled “Ripple (1),” which sent tokens to the account “rP4X2hTa.” This action increases the supply of XRP in circulation, as it introduces tokens that have not previously been traded.
Currently, the 400 million XRP remains in the “rP4X2hTa” account and is expected to be distributed to the address “rhWt2bhR” and other intermediary addresses before being sent to cryptocurrency exchanges. The first 150 million XRP from this dump has already left the 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 selling pressure on the spot market. Historically, XRP has experienced significant price drops when Ripple sells its tokens, with only five out of the 14 sell-off days this year resulting in positive price action. This highlights the importance of monitoring Ripple’s activities.
Furthermore, XRP has had negative monthly performance in three out of the first five months of 2024. As of now, the token is heading towards another losing month following one of the largest dumps by Ripple. XRP is currently trading at $0.488, down 5.5% from June 1. Investors should closely monitor Ripple’s sell-offs in the coming months, as they could potentially slow down an anticipated bull rally in the market.
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