American technology and blockchain solution company, Ripple Labs, initiated a series of XRP transfers, up to the tune of $1.5 billion, that caught the attention of market participants and investors. The parent company moved the large sum of XRP from its escrow wallet which is significantly higher than its regular monthly release.
At the beginning of every month, Ripple transfers millions of XRP from its holdings as a strategic move to fund the development of the ecosystem and to lock up the rest. However, this month’s transfers have sparked interest as it is notably more than the usual release, raising concerns about the potential impact on the price of the coin.
Ripple Releases 3 Billion XRP From Escrow
Meanwhile, Whale Alert, a prominent large crypto transaction tracker, reported this movement on X (formerly Twitter). According to the data provided, Ripple moved this much XRP in eight consecutive transfers. The blockchain giant started by moving 200 million XRP (valued at $104 million) from escrow to Ripple’s wallet.
200,000,000 #XRP (104,060,040 USD) transferred from unknown wallet to #Ripplehttps://t.co/05XWgKYWTt
— Whale Alert (@whale_alert) June 1, 2024
Sighting this transfer, community members immediately identified it as part of the monthly escrow releases, but the confusion came when the transactions continued. Shortly after, Ripple would initiate seven consecutive transfers. The next transfer carried another 300 million XRP (worth $155.9 million) to Ripple’s wallet. Then this was followed by a series of transfers moving 500 million XRP, another 500 million XRP, 300 million XRP, 200 million XRP, 500 million XRP, and another 500 million XRP. The total amount of XRP transferred equaled 3 billion which is worth over $1.5 billion. Interestingly, this represents about 5.4% of the total XRP circulating supply. Community Reaction
Even though some community members already stressed that the transfers are part of Ripple’s broader strategy, other participants have different thoughts, fearing that Ripple might be dumping that much amount into the market which will likely affect the price of the coin.
Source: X
However, expert analysts like Michael Nardollilo have calmed investors’ emotions, stating that the transfers are part of internal movements and escrow re-lock-ups. “Everyone it says “unknown” account the bot was wrong and it was still a ripple account,” he said.
It is very unlikely that Ripple will dump 3 billion XRP into the market as this will go against its interest as the largest XRP holder in the market. The embattled company has repeated this severally explaining its broader strategy to ensure the smooth running of the XRP ecosystem.
XRP Price Movements
The price of XRP has been consolidating for the past weeks. According to data from CoinMarketCap, XRP has experienced marginal growth of 0.06% over the last 24 hours to trade at $0.519. The trading volume over this period jumped by 9.6% to $999 million, triggered by the substantial transfers from escrow.
Moreover, XRP has traded between the range of $0.5164 and $0.5228 which is still 84.7% down from its all-time high of $3.40 reached in January 2018. In hindsight, XRP has dropped by 1.06% in the last seven days and by 1.94% over the last month.
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