Ripple May Dump Over 96 Million XRP Soon
Luisa Crawford Dec 28, 2023 04:11
Ripple's strategic handling of 240M XRP in December 2023 stabilized the market and may influence future cryptocurrency dynamics.
In December 2023, Ripple (XRP), executed a significant transaction involving its XRP tokens. The company spent 240 million XRP, valued at approximately $148.80 million, strategically managing its escrowed reserves. This move left 96.34 million XRP in Ripple's principal spending wallet, marked "Ripple (1)", with an estimated value of $59.73 million, aimed at stabilizing the XRP market.
Ripple's systematic management of its XRP reserves is a part of its broader strategy to stabilize the cryptocurrency market. The company operates under a well-defined escrow system, initiated in December 2017, designed to release 1 billion XRP monthly. To maintain market stability, Ripple typically re-locks 80% of these tokens back into escrow, with most of the remaining 20% transferred to its main wallet. This approach aims to balance the circulation of XRP tokens while mitigating the risk of market oversupply.
The specific transactions carried out by Ripple in December 2023 were executed in three separate batches. On December 1, Ripple received 200 million XRP from a wallet labeled “Ripple (22)”. Following this, the company distributed 60 million XRP on December 6, another 60 million on December 12, and 120 million XRP on December 20. These transactions resulted in the spending of 240 million XRP, reducing the balance in Ripple's main wallet to 96.34 million XRP.
The aftermath of these transactions and Ripple's remaining reserves hold significant implications for the XRP market. While Ripple has the option to either sell the remaining 96.34 million XRP or retain them, their actions are expected to be strategic to avoid negatively impacting the XRP price. Additionally, with 40.7 billion XRP still locked in escrow, Ripple's ongoing management of these reserves will continue to influence the XRP market dynamics until at least 2027.
Simultaneously, XRP's market performance in December 2023 marked a significant turnaround. After a five-year losing streak, XRP recorded a 5.18% gain, showcasing resilience and a potential shift in its market trajectory. This development reflects the adaptability of XRP in the volatile cryptocurrency market and indicates a possible revitalization of its market presence in the upcoming months.
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