Ripple has set aside 200 million XRP tokens, valued at $100 million, for its treasury following the unlock of 1 billion tokens in February. According to onchain data, the company initiated the sale of more than half of this month’s allocated supply inflation on February 5.
The selling activity mirrored previous patterns observed in Ripple’s token movements. However, this time, it commenced with a transaction totaling $60 million, involving the transfer of 120 million XRP tokens, marking the highest initial monthly payment since February 2023.
Transactions from Ripple’s known treasury account, labeled ‘Ripple (1)’, were directed to ‘rP4X2…sKxv3’ just five days after the tokens were unlocked. This address has been consistently used for the company’s previous sell-offs.
As of the latest update, Ripple still retains 80 million XRP from the February unlock. Following the receipt of Ripple’s payment, ‘rP4X2…sKxv3’ conducted transactions with three other accounts. Initially, 3 million XRP was transferred to ‘rBQhw…vZkN5’, and 17 million to ‘rhWt2…E32hk’ at 8:59 pm (UTC). Subsequently, ‘rJqiM…La8nE’ received 1 million XRP on the same day.
On February 6, ‘rhWt2…E32hk’ received an additional 9.55 million XRP, bringing the total to 26.55 million XRP. The original recipient still possesses 89.45 million XRP, which could potentially be offloaded onto cryptocurrency exchanges, amounting to nearly $45 million. This influx of tokens into the market could exert selling pressure and influence XRP’s price dynamics.
It’s crucial to recognize that Ripple strategically liquidates its holdings during opportune moments. These sell-offs often constitute a substantial portion of the token’s daily trading volume, capable of impacting short-term price movements.
Furthermore, recent news of a hack resulting in the loss of $112 million worth of XRP belonging to Ripple’s Co-founder and Executive Chairman, Chris Larsen, has stirred market concerns. The anticipation of a potential sell-off, with a value comparable to this month’s reserves, has contributed to negative sentiment surrounding the token’s price.
