Ripple is preparing for a large XRP sale in July, reserving 14.5 billion tokens worth $30 billion. This move follows their routine monthly practice of unlocking 1 billion tokens through escrow, with the last sale occurring on July 1st. The tokens were distributed across various accounts, including “Ripple (24)” and “Ripple (25)”, with an additional 100 million tokens expected for a larger sale this month.
Historically, Ripple’s monthly sales increase the circulating supply of XRP, which affects its market price. Since introducing the escrow system in 2017, Ripple has typically reserved no more than 350 million XRP for sales, but in recent months, higher values have been observed, such as the sale of 400 million XRP in June.
This system was introduced to address investor concerns about transparency, but increased supply often leads to price declines. Despite improvements in transparency, the economic effects of these sales continue to impact the market performance of XRP.
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Despite the price declines, large investors are still buying meme cryptocurrencies like PEPE. Ripple’s sales range from 200 million to 400 million XRP per month in 2024, directly impacting the price of XRP. Out of the 14 days of sales this year, price increases were observed in only five, with local crashes in the rest.
These fluctuations highlight the importance of monitoring Ripple’s activities. Furthermore, XRP has had negative monthly results in four of the first six months of 2024. As Ripple continues its sales, market observers remain cautious about potential impacts on prices and overall market stability.
