Ripple made headlines this Friday morning with a significant move, selling off 150 million XRP tokens worth approximately $85.50 million. This sale marks the company’s first XRP transaction of September and comes at a time when XRP is showing subtle signs of recovery from recent lows.
On September 13, data from XRP Scan revealed that the ‘Ripple (1)’ address transferred 150 million XRP to the ‘rP4X2h…’ address. This transaction, while substantial, is just the beginning of Ripple’s selling activities for the month. With 200 million XRP still held in reserve, the company appears to be positioning itself for further moves in the coming days.
Earlier in the month, Ripple unlocked 1 billion XRP tokens, re-locked 80% of them, and allocated 200 million to ‘Ripple (1)’. Additionally, the company prepped for a larger sale by transferring an extra 150 million XRP from ‘Ripple (29)’. This buildup is reminiscent of previous large-scale sell-offs, such as the 400 million XRP sold in June—the largest to date, according to Finbold.
In 2024 alone, Ripple has transferred a staggering 2.176 billion XRP tokens to unknown addresses, which analysts speculate are linked to over-the-counter (OTC) transactions. At current prices, this amounts to a substantial $1.24 billion. On August 27, Ripple executed its routine sale of 200 million XRP, valued around $120 million, which reportedly influenced a temporary price dip.
As of the latest update, XRP is trading at $0.568, reflecting a 6.05% increase over the past week but still 2% below late August levels. The token experienced a drop to $0.509 on September 6, aligning with broader market trends following Ripple’s token releases.
This price fluctuation seems to follow a recurring monthly pattern where significant XRP unlocks lead to market corrections. Despite these challenges, recent positive developments provide some optimism. Grayscale’s announcement of an XRP trust and shifting signals from the Securities and Exchange Commission (SEC) regarding crypto asset classification, as highlighted by Stuart Alderoty, Ripple’s Chief Legal Officer, could potentially bolster XRP’s market performance.
Ripple’s latest sale injects notable selling pressure into the market. However, with supportive news and a possible shift in regulatory stance, XRP might see renewed demand, counteracting the negative impact of these sell-offs. As Ripple continues to navigate its strategic moves, the market remains poised for further developments.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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