Blockchain giant, Ripple, has made headlines today with a significant transfer of XRP coins from its reserve to another wallet. The substantial transfer has raised conjecture among community members and observers about the reason and the potential effect on the coin’s price.
XRP has been sluggish in its movement for a while mostly because of the prolonged court saga between Ripple and the SEC. However, following the recent market rally, XRP climbed by over 6%, reaching a high of $0.57. However, at press time, the coin traded at $0.555, indicating a 4.54% increase in the last 24 hours.
XRP’s Transfer to Unknown Destination
The transaction was flagged by Whale Alert, a prominent crypto large transaction tracker on X (formerly Twitter). According to the details, the California-based blockchain company, Ripple, moved a staggering 470 million XRP coins, valued at approximately $250.4 million, to a waller labeled “unknown.”
470,000,000 #XRP (250,454,910 USD) transferred from #Ripple to unknown wallethttps://t.co/cIMknG2fMH
— Whale Alert (@whale_alert) November 6, 2024
However, upon further check, we discovered that the address labeled ‘rP4X…Kxv3,’ is a regular recipient of XRP from Ripple. Since last month, there have been several XRP transactions, in and out of the wallet including a 200 million XRP deposit on October 21.
Meanwhile, it is important to note that such large transfers by Ripple aren’t alien, as the company occasionally releases staggering amounts of coins for several purposes including funding its operations and initiatives and providing liquidity for its ODL services.
Also, at the beginning of each month, Ripple releases 1 billion XRP from escrow to control the supply of the coin in the market. However, such large transactions can be perceived otherwise by the market and can greatly impact the price trajectory of XRP.
Another factor that negatively impacts XRP is Ripple’s legal developments. The Ripple vs SEC case has affected the momentum of XRP and has suppressed its movement over the years. A favorable outcome for Ripple could boost XRP’s appeal to both institutional and retail investors thereby exposing it to a wider market.
Trump Victory Fuels XRP Transaction Volume
Meanwhile, XRP saw an increase in its transaction volume over the last day. According to data from CoinMarketCap, the seventh-largest cryptocurrency by market cap recorded a total trading volume of $1.94 billion in the last 24 hours.
The surge was attributed to an increase in investor interests and an anticipated change in crypto regulations. Recall that the newly elected president of the United States, Donald Trump, had promised a strategic shift in the way cryptocurrencies are regulated in the country during his campaign.
In fact, he had promised to remove the current Securities and Exchange Commission (SEC) chair, Gary Gensler, on his first day in office. This plan was welcomed with open arms by the XRP community as Gensler has waged war against the crypto sector, particularly against Ripple for the last four years.
A new change in administration could mean a breath of fresh air for XRP and the broader crypto community as new pro-crypto policies would catalyze the growth of the sector.
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