According to on-chain data from Whale Alert, Ripple has transferred a significant amount of XRP to an unidentified address as the cryptocurrency’s price remains below $0.50. The transaction occurred yesterday, with a Ripple-affiliated blockchain address moving 250 million XRP ($122.5 million) to an unknown wallet.
Although Whale Alert labeled the recipient wallet as unknown, information from Bithomp reveals that Ripple activated it on October 2, 2023. Prior to the recent transaction, the recipient address has been active and involved in a series of transactions. This month alone, the recipient address has sent out 219.66 million XRP to multiple wallets. Interestingly, shortly after receiving the 250 million XRP from Ripple, the address sent out 50,000 XRP.
On the other hand, the wallet has also received 400 million XRP from Ripple this month, including the recent 250 million inflow. As of now, the address holds a total balance of 270.95 million XRP. In contrast, the sending wallet now has a balance of 275.99 XRP after the outflow of 250 million XRP.
There are concerns among investors that Ripple’s significant XRP transactions may indicate its intention to sell some of its holdings, potentially adding more pressure to the coin’s price. Many investors blame Ripple’s continuous sales and large holdings for the underperformance of XRP. Ripple releases 1 billion XRP from escrow every month, re-locking 800 million and using the remaining 200 million for expenses.
In response to these allegations, Ripple CTO David Schwartz argues that it is nearly impossible for the company to avoid selling XRP. He explains that Ripple has limited options to reduce its holdings and relies on sales as the primary method. Currently, XRP is trading at $0.4894, with a 1.03% decline in the past day and an 8.33% loss in the monthly charts. Like other assets, XRP has experienced a recent downturn, dropping from a 30-day high of $0.5423 to a monthly low of $0.4636.
Disclaimer: This article provides information and should not be considered as financial advice. The author’s opinions may be included, but they do not necessarily reflect the views of The Crypto Basic. Readers should conduct thorough research before making any investment decisions, and The Crypto Basic is not liable for any financial losses.
