Ripple is, by far, the largest active holder of XRP, with over 45 billion tokens under its control. Every month, the company dumps large amounts of XRP in strategic sell-offs, and February activity is still ongoing.
Notably, over 40.70 billion XRPs are locked in escrows and still not part of the token’s circulating supply. However, Ripple still has over 5 billion of liquid assets that the institution can sell at any moment.
In February, the monthly escrow unlocked 1 billion tokens, of which 800 million were re-locked for future release. So far, Ripple’s treasury account has already dumped 260 million XRP – 60 million more than this month’s inflation.
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The extra amount originated from a dormant wallet address, which funded the treasury account with 100 million XRP.
Will Ripple sell more XRP in February?
Interestingly, this accounts exclusively for the treasury address labeled ‘Ripple (1)’ by XRP Scan. It is possible that the company has other active selling sources that are not accounted for in this report.
In particular, the 260 million dumped XRP in February equals $140.40 million at the current $0.54 price.
‘Ripple (1)’ still has 40 million tokens behind from the extra 100 million on February 11. This is a likely amount for a final dump this month. However, the company can still sell the billionths held liquid in dozens of identified addresses under its control, as demonstrated with the most recent event.
XRP price analysis amid Ripple’s dump activity
Meanwhile, XRP started trading at $0.5 on February 1 and is now up 8% from the beginning of the month.
Nevertheless, it is changing hands in a downtrend from a local top in July 2023, now facing a short-term retracement following the last sell-off on February 20.
In conclusion, it is hard to know the direct impact Ripple’s dumps have on the price by looking at XRP’s daily chart. On the other hand, the economic effects of a supply increase or an increased selling pressure are real, as they impact the book offer and may cause temporary drops if the demand (or the buying pressure) is not strong enough.
Investors must trade cautiously and be aware of whale’s activities for proper risk management and profitable decisions.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
