$1.5 Billion Worth Of XRP Tokens Transferred In A Day

Over the last 24 hours, there has been significant activity surrounding XRP, grabbing the attention of the entire cryptocurrency community. According to Whale Alert, a blockchain tracker, there have been multiple transactions involving 3 billion XRP tokens, valued at around $1.5 billion. This notable movement has raised concerns about its potential impact on prices.

Market Concerns

It is customary for Ripple to release about 1 billion XRP tokens through its escrow wallet at the start of each month. However, the recent unusual movement of assets has surprised observers, leading to speculation about the nature of these transactions.

Marty Party, a crypto commentator, pointed out that the transfer of 3 billion tokens accounts for 5.45% of the total circulating supply and occurred between Ripple-affiliated wallets within half an hour. Some members of the community clarified that these transfers were part of routine fund consolidations related to escrow operations. They noted that out of the 3 billion tokens, 1 billion worth $520 million were released via an escrow address.

Michael Nardolillo, a crypto analyst, explained that the majority of these movements involve internal transfers and relocking of escrow. Whenever it indicates an unknown account, he added, it usually means the bot made an error, and it was still a Ripple account.

Room For Improvement

Historically, the price of XRP has tended to fluctuate in response to the escrow releases, often influenced by market sentiment. Despite experiencing a 1% decline in the past 24 hours, XRP has remained steady around $0.5, indicating that the recent release via escrow has not significantly affected its performance.

Nevertheless, some market experts believe that the release of tokens could introduce additional selling pressure. Reports suggest that Ripple may be gearing up for its most substantial monthly XRP sell-off since 2017, with plans to unload 400 million XRP tokens, valued at $208 million, in June. While XRP continues to rank among the top ten cryptocurrencies by market capitalization, it has been one of the poorest performers among major tokens this year.