Ripple, the largest holder of XRP tokens, is strategically managing a considerable portion of XRP’s supply, with ongoing sales even in the current month. A detailed account reveals that Ripple has over 5 billion readily available XRP to sell, beyond the 40.7 billion locked in escrow. February saw the release and subsequent relocking of tokens, indicating Ripple’s deliberate approach to releasing XRP into circulation.
Strategic Token Allocations and Sales
Ripple’s treasury activities show a release of 260 million XRP this month, exceeding the projected monthly increase. The extra funds trace back to an inactive wallet that contributed 100 million XRP to Ripple’s treasury. Despite revealing only one treasury address, Ripple may be operating through other undisclosed sales channels. With the current price, the 260 million XRP equates to an influx of approximately $140.4 million into the market.
Recent XRP Market Movements
The price of XRP has experienced volatility, with an 8% increase since the start of February, following a downtrend since July of the previous year. These sales practices could partly explain the recent price decline and potential for future pullbacks. Ripple’s capacity to liquidate a significant number of tokens at any time poses questions regarding the impact of such moves on the market.
Determining the direct influence of these sales on XRP’s price remains challenging when looking solely at daily trading charts. However, an increase in supply and selling pressure from Ripple’s activities can have tangible economic effects, potentially resulting in a downward pressure on price if the market demand does not offset these actions.
