Ripple, the XRP Ledger (XRP) developer and largest holder, sold 150 million XRP from this month’s reserves on June 7. The sale is worth $78 million, representing 0.25% of XRP’s $29.25 billion capitalization at $0.52 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.
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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.
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, as happened in previous months.
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 12 sell-off days had positive price action: February 5, 11, April 14, May 13, and 20. All the other seven days were of local crashes, evidencing the importance of monitoring the company’s activities.
Moreover, XRP had a negative monthly performance in three of the first five months of 2024, year-to-date.
As of this writing, XRP trades at $0.523 with an increasing supply pressure over its spot price. Therefore, investors should closely monitor Ripple’s dumps in June, as they could slow down an expected bull rally this cycle.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
