Ripple sells 150 million XRP from July reserves, price under pressure

Ripple, the developer and largest holder of XRP Ledger (XRP), sold 150 million XRP from this month’s reserves on July 9. The sale, worth $64.5 million, is $13.5 million less than the same activity last month. This sale has direct implications for the price of XRP, which has been under pressure for some time.

Banner Ripple 1

XRP Release and Redistribution

On July 1, Ripple released 1 billion XRP from its initial distribution, which has been locked in monthly escrows until 2027. The company then sent 200 million XRP to its treasury account and re-locked the remaining 800 million into new escrows. Additionally, the “Ripple (35)” account sent an additional 100 million tokens to the auction supply, bringing the total to 300 million XRP.

XRP Supply Inflation

As usual, the selling activity took place from the treasury account labeled ‘Ripple (1)’, which sent tokens to the unlabeled account ‘rP4X2hTa‘. This action causes inflation of the XRP supply, as tokens that have never been in circulation are released into circulation for the first time. Currently, there are 100 million tokens in the ‘rP4X2hTa’ account, while 50 million have already been transferred to ‘rhWt2bhR‘, another common intermediate address, before ending up on cryptocurrency exchanges.

Impact on XRP price

Ripple’s sales are known to directly impact XRP’s price, given the pressure they create on the spot market. Historically, XRP has experienced a local crash most of the times Ripple has sold its tokens. This year, only five out of fourteen sales had a positive price impact. Additionally, XRP has had a negative monthly performance in four out of the first six months of 2024. So far this year, Ripple has sold 1.676 billion XRP, increasing its supply by 3.10%.

Current price and performance

At the time of writing, Ripple’s price is trading at $0.4014. Over the last 24 hours, the Ripple price has dropped by ▼ 0.69% – a drop in value of -$0.002764. There are currently 55,723,063,839 XRP in circulation with a total market cap of $22,206,969,260.00.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button