Ripplea cryptocurrency payments company and the largest holder of XRP, launched another large scale transaction this has attracted the attention of the crypto market. The payment protocol and exchange network sold 150 million XRP, representing approximately 0.25% of the cryptocurrency’s current market capitalization.
Ripple’s large-scale transfer
In a recent article from X (formerly Twitter) on Wednesday, May 13, the blockchain tracking and analysis system, Whale Alert disclosed that Ripple had sold 150 million XRP tokens worth over $75.7 million. The recipient of the substantial XRP transfer was an anonymous crypto wallet address identified as “rP4X2hTa7A”, which was activated by Ripple.
The transfer occurred in two separate transactions, with a time difference of one hour. Whale Alert revealed that 100 million XRP worth approximately $55,776,737 was transferred to “rP4X2hTa7A” from another anonymous wallet address “rhWt2bhRq”.
The second transaction saw the remainder of the XRP moved to “rP4X2hTa7A,” recording a transfer of 50 million XRP worth approximately $27.8 million.
According to data Since the XRP Ledger (XRPL) explorer, Bithomp, Ripple has always maintained a relationship with the wallet address, rP4X2hTa7A. Earlier on April 24, the crypto payment company transferred a whopping sum of 100 million XRP to the wallet address above. After which, parts of the cryptocurrencies were distributed from the wallet to several external addresses.
It is also worth mentioning that Ripple launched its 150 million XRP transaction after release 1 billion XRP tokens on May 1st from its regular monthly unlock. After the release of XRP, Ripple distributed the cryptocurrency, transferring 200 million XRP to its personal treasury account and allocating the rest of the tokens to new receivers.
XRPScan data also revealed that after receiving the XRP escrow, the Ripple treasury account identified as “Ripple (1)” had sent the tokens to the aforementioned wallet address, thereby increasing The XRP supply inflation by introducing new tokens to the market that were previously never in circulation.
Following the XRP transfer to rP4X2hTa7A, the anonymous wallet address retained 50 million XRP and moved the remaining 100 million XRP to another unknown wallet. If this distribution model continues, a massive sell-off could occur, which could impact the price of XRP, which consolidated around the Price mark of $0.5.
XRP Price Analysis
Although Ripple’s 150 million XRP dump is not his first transfer this year, a potential sell-off could have a drastic effect on XRP. Historically, the value of XRP tends to experience slight declines after Ripple sells its tokens.
Following this trend, Ripple’s recent XRP transfer potentially led to a dramatic drop in the price of the cryptocurrency. Just a few days ago, the price of XRP was trading around $0.5. However, at the time of writing, the cryptocurrency is trading at $0.49, representing decreases by 1.37% in the last 24 hours and by 4.03% in the previous week, according to CoinMarketCap.
Featured image of StormGain, chart by Tradingview.com
