Ripple is, by far, the largest active holder of XRP, with over 45 billion tokens under its control. Every month, the company dumps large amounts of XRP in strategic sell-offs, and February activity is still ongoing.
Notably, over 40.70 billion XRPs are locked in escrows and still not part of the token’s circulating supply. However, Ripple still has over 5 billion of liquid assets that the institution can sell at any moment.
In February, the monthly escrow unlocked 1 billion tokens, of which 800 million were re-locked for future release. So far, Ripple’s treasury account has already dumped 260 million XRP – 60 million more than this month’s inflation.
XRP/USD daily chart. Source: TradingView (Finbold)
Nevertheless, it is changing hands in a downtrend from a local top in July 2023, now facing a short-term retracement following the last sell-off on February 20.
In conclusion, it is hard to know the direct impact Ripple’s dumps have on the price by looking at XRP’s daily chart. On the other hand, the economic effects of a supply increase or an increased selling pressure are real, as they impact the book offer and may cause temporary drops if the demand (or the buying pressure) is not strong enough.
Investors must trade cautiously and be aware of whale’s activities for proper risk management and profitable decisions.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
