Ripple, the XRP Ledger (XRP) developer and largest holder, sold 250 million XRP from this month’s reserves on June 20. The amount is worth $122.5 million, representing 0.44% of XRP’s $27.20 billion capitalization at $0.49 per token
On June 1, the company released 1 billion XRP from the initial distribution, locked in monthly escrows until 2027. Ripple then sent 200 million XRP to its treasury account and locked the remaining 800 million in new escrows.
Additionally, the ‘Ripple (35)‘ account sent an extra 200 million tokens to the sell-off reserves, totaling 400 million XRP. This was the company’s largest sell-off preparation for a single month, which is now completely sold out.
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As usual, the selling activity resulted from the treasury account, labeled ‘Ripple (1),’ sending tokens to the unlabeled account ‘rP4X2hTa‘. This action causes XRP supply inflation—by putting tokens that have never circulated before into circulation for the first time.
Ripple’s 400 million XRP dump in June
So far, the amount remains in the ‘rP4X2hTa’ account, which will likely be distributed to ‘rhWt2bhR‘ and other intermediary addresses before landing in cryptocurrency exchanges. The first 150 million XRP dump in June has already fully left this intermediary address and reached the market.
XRP price analysis amid Ripple sell-offs
It is noteworthy how Ripple sales directly impact XRP’s price, considering the supply pressure they create on the spot market. Historically, XRP suffered a local crash most of the time Ripple sold its tokens.
Year-to-date, only five of the 14 sell-off days had positive price action: February 5, 11, April 14, May 13, and 20. All nine other days were of local crashes, evidencing the importance of monitoring the company’s activities.
Moreover, XRP’s year-to-date monthly performance has been negative in three of the first five months of 2024.
As of this writing, the token is heading to another losing month amid one of the largest dumps from Ripple. XRP was trading at $0.488 by press time, down 5.5% from June 1. Therefore, investors should closely monitor Ripple’s sell-offs in the next months, as they could slow down an expected bull rally this cycle.
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