Ripple’s Major XRP Sale in July: What Investors Need to Know

• Ripple (XRP), a crypto project with significant Turkish interest, is gearing up for a substantial token sale in July.
• The company is set to offload 300 million XRP tokens valued at around $145.50 million.
• Ripple regularly increases circulating supply by selling a portion of its reserves each month.

Discover the latest insights on Ripple’s upcoming XRP sale and its potential impact on the market.

Ripple’s XRP Reserves and Escrow Operations

On July 1st, Ripple released 1 billion XRP via the XRP Ledger escrow system. This release was conducted through two accounts named ‘Ripple (24)’ and ‘Ripple (25)’, with a combined value of $485 million. Typically, Ripple transfers 200 million tokens to its treasury monthly. However, this month saw an additional 100 million XRP moved from the ‘Ripple (35)’ account to ‘Ripple (1)’, suggesting a larger-than-usual sale is imminent.

The ‘Ripple (24)’ account initially sent 200 million XRP to ‘Ripple (1)’ for the July sales. Subsequently, ‘Ripple (1)’ transferred 300 million tokens to ‘Ripple (12)’, locking them until November 2027. Concurrently, ‘Ripple (25)’ sent the remaining 500 million tokens to ‘Ripple (13)’, locked until October 2027. These transactions can be verified via the XRP Scan block explorer.

Historical Sales of Popular Altcoin Ripple

Since implementing the escrow system in 2017, Ripple has reserved up to 350 million XRP for monthly sales. On occasion, the company has held back portions of the reserve, waiting for more advantageous selling conditions in subsequent months. While there have been larger sales, the token amount has never exceeded 400 million XRP in any given month.

In 2024, Ripple sold varying amounts of XRP each month, tallying 226 million, 260 million, 240 million, 200 million, 200 million, and 400 million tokens from January to June, respectively. Despite improved transparency through the escrow system, introduced in response to investor concerns, the economic effects of increased supply have continued to influence XRP’s market performance.

XRP Price Analysis and Impact of Ripple Sales

Historically, Ripple’s token sales have exerted downward pressure on XRP prices in the spot market. From the start of 2024, XRP prices experienced gains on only five out of fourteen sales days: February 5, February 11, April 14, May 13, and May 20. On the remaining nine days, the prices fell, underscoring the importance of monitoring Ripple’s activities closely.

Moreover, XRP has shown a negative performance in four of the first six months of 2024, with current prices hovering around $0.484. Investors should keep a keen eye on Ripple’s sales in July, as these events could potentially stall the anticipated bull rally.

Conclusion

In conclusion, Ripple’s sale of 300 million XRP tokens this July poses significant implications for market dynamics. Historical data suggests that such sales often result in price depressions, and with the current economic environment, investors need to stay vigilant. Monitoring Ripple’s movements and anticipating market reactions will be crucial for navigating the upcoming period. Investors should brace for potential volatility as these token releases unfold.